Inflation Risks and Products

The financial crisis has seen wild swings in inflation and inflation expectations

As markets tried to digest deflationary forces unleashed by the credit crunch they were hit with fears of the inflationary impact of huge government spending. Will today’s falling prices quickly give way to an inflation backlash? How are you managing these risks?

Inflation Risks and Products - The Complete Guide is the most comprehensive, accessible, practical and up-to-date guide to the global market for inflation-hedging products. The book demonstrates how inflation products can be structured and used successfully in a range of portfolios and investing institutions.

As tools to mitigate risk – both inflationary and deflationary – inflation-linked bonds have seen explosive development in recent years. They are now a global phenomenon.

Liquid markets for these products mean investors now recognise them as a separate asset class. The market is becoming more and more complex as sophisticated new players such as hedge funds, liability driven investors, and non-life insurance practitioners are added to the mix.

Throughout Inflation Risks and Products leading industry authorities explain the intricacies of markets worldwide and detail strategic approaches to quickly and effectively improve your investment and hedging strategies. Inflation Risks and Products dissects and analyses the issues you as a market practitioner face and presents you with the latest implementable solutions to the most frequently encountered challenges.

With this new book you will quickly gain a comprehensive understanding of:

• The products and the development of the fast growing inflation market
• Insights into new markets such as property derivatives and infrastructure projects
• How to overcome the challenges of modelling and pricing innovative structured and derivatives products
• New and emerging trading strategies
• The latest investment opportunities for hedge funds and asset & liability managers
• Hedging strategies and their use as an efficient tool for pension funds and insurance companies
• The benefits of inflation-linked products for sovereign and corporate issuers
• The thinking and practice of issuers

The industry’s foremost experts, drawn from a range of sectors including banks, asset management, hedge funds, debt management, insurance, pension funds and risk management consulting explain how inflation-linked products are used to generate profit today, and their strategic application in the future.

The book provides cutting-edge analysis of increasingly important subject areas such as liability management, credit risk, and the inflation derivatives market, as well as taking a more global perspective of inflation-linked products, with case studies of burgeoning markets in Japan, Australia, Latin America, Korea, among others.

Inflation Risks and Products is essential reading for: corporate and financial institution treasurers, product structurers, inflation traders, debt managers, hedge funds, pension funds, asset & liability managers, securitisation professionals and accounting professionals.