New fixed income research paper: "Inflation as a tradable macro risk"
Natixis AM’s Fixed Income investment division is pleased to present its latest research publication. Composed by the Quantitative Research and Analysis team, the document highlights the theme of inflation.
“Inflation represents the erosion of purchasing power for economic agents and is the main risk affecting holders of financial assets paying fixed interest.
We examine long-run and short run determinants of inflation and we highlight the role of inflation expectations. Expected inflation changes over time in res¬ponse to economic developments and monetary policy decisions. Market instruments show that expectations are influenced by incoming economic news.
We also describe the development of index-linked bond and derivative markets, the way they can be used for investment or diversification purpose and the issuer perspective.”