The real impacts of inflation and its most extreme form – hyperinflation – are known only too well: they erode value, unbalance economies and destroy wealth.
In the wake of the financial crisis a huge monetary overhang threatens the major developed economies.
The iron laws of economics have no respect for modern semantic niceties of “quantitative”, “credit” or “monetary” easing: these policies all portend of inflation that must work its way out of the system.
As a result markets have focused attention on assets that protect the investor from loss of purchasing power.
Inflation-sensitive assets – including commodities, equities, infrastructure and real estate investments, and inflation-linked securities – have in fact become a new asset class.
Many institutional investors controlling trillions of dollars’ worth of assets are allocating an increasing weight to the sector as an alternative and complement to other traditional assets.
In Inflation-Sensitive Assets: Instruments and Strategies, Stefania Perrucci and Brice Benaben blend insights and experiences from market participants including investment bankers, asset and pension fund managers and central bankers to guide the reader through this emerging sector.
This book, for the first time, addresses the commodities and inflation markets together, providing a holistic treatment from an inflation perspective.
Inflation-Sensitive Assets: Instruments and Strategies provides the reader with a deep understanding of the drivers of inflation, the assets which can be used to hedge it and how investors can formulate strategies when managing assets and liabilities in an inflation-sensitive environment.
Designed for practitioners, the book includes important academic contributions, and will be of interest to portfolio managers, risk managers, plan sponsors and researchers alike.
- Book 9781906348625 / EBook 9781906348625
- Publish date
- 18 Jul 2012
- 155mm x 235mm
Table of contents
This is a provisional table of contents and may change on publication
Part 1 - Introduction: Markets and Instruments
1 Inflation Sensitive Assets
2 Investable Commodity Indexes and Inflation: A Brief History
3 The Commodity Market: Implications for Policy and Investments
Kamal Naqvi and Ric Deverell
4 Real Estate Investments and Inflation
Brad Case and Susan Wachter
5 Infrastructure Assets and Inflation
6 Equity Strategies and Inflation
7 The Inflation-Linked Market
Gang Hu, Stefania Perrucci
8 Inflation Derivatives and Options
Brice Benaben, Stefania Perrucci and Franck Triolaire
Part 2 - Research and Macro Perspective
9 The Role of Models in Modern Monetary Policy
10 Market Inflation Expectations and the Term Structure of Interest Rates
Jing-Zhi Huang and Olesya Grishchenko
11 Monetary Policy, Inflation and Commodity Prices
Frank Browne and David Cronin
12 Inflation and Asset Prices
John (Jack) Tatom
13 Inflation and Equity Returns
14 Dynamic Inflation Hedging: What Works and When?
Alexander Attie and Shaun Roache
Part 3 - Practical Insights from Market Participants
15 Practical Models for Inflation Forecasting
16 Insurance Companies Management of Inflation Risk
Ken Griffin and Edward Yao
17 Pension Funds Management of Inflation Risk and Liabilities
18 Ultra High Net Worth Investors and The Real Asset Value Chain
19 Actively Managed Real Return Strategies
20 Opportunities in Inflation: Emerging Markets
Brice Benaben and Stefania Perrucci
“This book provides an essential resource for investors, consultants and service providers keen to preserve wealth”
Managing Director, Head of Real Return Portfolio Management, PIMCO