KnowledgeBank

This web site uses cookies; by continuing to browse you consent to our cookies usage. See our policy for more details.

×
 

Authors:
Brij Khurana

Multi-Asset Portfolio Manager

Brian Garvey

Multi-Asset Portfolio Manager

Thomas Obaseki

Multi-Asset Portfolio Specialist

Publication date: Dec 2016

Opportunistic Inflation Sensitive Bond: A new approach to hedging inflation risk

Opportunities and risks | Appears in: Fixed income, Fixed income strategies for today — and tomorrow, Defined contribution plans, Insights for DC sponsors in 2017

The authors outline a strategy that aims to hedge inflation risk more effectively and deliver higher total returns than traditional inflation-linked bonds (ILBs) in inflationary regimes, with similar volatility. OISB pairs a core allocation to developed market ILBs with opportunistic allocations to other fixed income sectors that tend to be more directly linked to sources of future inflation.

SECTIONS OF INTEREST

Who we serve | Defined contribution plans