Updates

  1. Person pages list letters, writing, profiles and links as sortable tables with filters, and show each person's companies as links; Fund letters show each letter's description in its own column.
  2. Experts show a checked job title and a short description of each person; 30 more people have photographs.
  3. Every company, fund, university and publication the experts work for has a page listing the people there.
  4. Fund letters show each letter's thesis and filter by it; 225 person pages list the essays, columns and newsletter issues the person wrote.
  5. Person pages list every essay and newsletter issue a person wrote, and their own books as a table in List view.
  6. Recommends shows the five largest kinds of book and the rest under More; browse pictures load sooner.
  7. Podcasts and talks link the original episode, filter by Audio and video or Press, and list each publisher once.
  8. Pages are wider, Recommends has List and Grid, and a filter clicked again turns off.
  9. Book cards sit in a ruled grid with Open Library and Goodreads links and each book's one-line note.
  10. Funds is now Investors; each investor's styles are buttons that filter the table.
  11. Podcasts and talks on a person's page filter by year and publisher and show as a list or a grid of pictures.
  12. Quotes show only people's own words: 472 summaries written by list sites are gone.
  13. Country pages open from Browse again, and every link on the shelf lands on a page.
  14. Subject and person pages show their sections as tabs, and each book appears once on a person's page.
  15. Book cards show the quote, who said it and the source; grids show five cards to a row.
  16. On a phone, a menu holds the sections, search, Updates, Feedback and dark mode.
  17. Feedback takes a screenshot of the page with no browser prompt, opens a screenshot full size when you click it, and clears itself once sent.
  18. Book cards are centred, search names the topic each book sits in, and any text cut short shows whole on hover.
  19. Search groups its results by kind: people, companies, geographies, subjects, topics, books, funds, fund letters and papers.
  20. The Books table lists who recommended each book by name, and the browser tab names the section you are in.
  21. Feedback can take a screenshot of the page, or one you paste or choose, and opens in the corner beside Updates.
  22. Each rail button reopens its section where you left it, and Browse, Table and People show on every book and subject page.
  23. Filters grey out choices that hold nothing instead of hiding them, and Books › People filters by authors or recommenders.
  24. Feedback takes a subject line and up to three screenshots.
  25. Biographies are grouped by the person they are about: 41 new pages, from Abraham Lincoln to Lee Kuan Yew.
  26. Sport splits into 23 sports, and Religion into one topic per faith.
  27. Book lists show as cards: the cover, one recommendation quote and every recommender by name.
  28. Seventeen subjects that had two or three pages under different names now have one page each.
  29. Every page lists its Experts as authors and recommenders, with a link to them on the Experts tab.
  30. Economics, Financial history, Financial panics and Accounting are subjects of their own, with one page per financial crisis.
  31. Book, person and subject pages open inside the app, so the tabs stay in view.
  32. 996 more book covers, and photographs or logos for 227 more people and companies.
  33. Books › Browse shows every subject as cards, and the rail holds Fund letters, Papers, Experts, Books and Funds.
  34. Every topic over 150 books splits into narrower topics, each with a page of its own.

Send feedback

What is it?
Screenshots, up to 3 (optional)
or paste one with Ctrl+V

We use your email only to reply to you.
Inflation-Indexed Securities

Inflation-Indexed Securities

Mark Deacon, Andrew Derry, Dariush Mirfendereski
2004
T3 360 pages · about 6h to read Open Librarygoodreads

The standard reference on linker design, pricing and global markets.

Summary

Mark Deacon and Andrew Derry, with Dariush Mirfendereski in the second edition, wrote the standard practitioner reference on index-linked government bonds. Deacon and Derry worked at the Bank of England on the United Kingdom's index-linked gilt programme, which began in 1981 and was the first significant issuance by a developed sovereign, so the book carries the perspective of the issuer as well as the investor.

The content divides into three parts. The first covers why governments issue index-linked debt, including the arguments about reducing the inflation risk premium, signalling commitment to price stability, and extracting information about inflation expectations from the breakeven rate. The second covers the mechanics in detail: indexation lags, the difference between the Canadian model and the older United Kingdom eight-month lag structure, deflation floors, tax treatment, and the cash-flow arithmetic. The third covers the individual national markets, including the United Kingdom, the United States, France, Canada, Australia, Sweden and several emerging markets, with the institutional detail of each programme.

The second edition also treats inflation derivatives, which had grown substantially by 2004. The book's weakness is that it stops before the 2008 crisis, when index-linked markets became severely illiquid and breakeven rates stopped functioning as clean expectations measures, and before the large-scale central bank purchases that further distorted them. Anyone using breakevens as an inflation signal should read the book's own careful discussion of why the breakeven contains a liquidity premium and a risk premium alongside expected inflation.

Key takeaways 7

  1. The breakeven inflation rate contains a liquidity premium and an inflation risk premium in addition to expected inflation, so it is a biased forecast.
  2. Indexation lags mean that index-linked bonds do not hedge inflation over the final months before maturity.
  3. Governments issue index-linked debt partly to signal that they do not intend to inflate away their obligations.
  4. The design choice between short and long indexation lags determines whether the bond trades as a real instrument or carries nominal exposure.
  5. Deflation floors on principal, present in United States securities and absent in United Kingdom ones, are an embedded option with measurable value.
  6. Tax treatment of the inflation uplift differs by jurisdiction and can eliminate the real return advantage for taxable holders.
  7. Index-linked markets are structurally illiquid because most holders are liability matchers who do not trade.

Who should read it

Fixed income practitioners and treasury officials who need the technical mechanics and cross-country design detail of index-linked government debt.

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

Handbook of Inflation Indexed BondsHandbook of Inflation Indexed Bonds
T2 Handbook of Inflation Indexed Bonds
John Brynjolfsson, Frank J. Fabozzi · 1999
Open LibraryGoodreads

Essays on inflation-indexed bonds, written as the US TIPS market opened.

Inflation-Linked ProductsInflation-Linked Products
T4 Inflation-Linked Products
Brice Benaben · 2005
Open LibraryGoodreads

Guide for investors and ALM managers to linked bonds and swaps.

Inflation Risks and Products
T4 Inflation Risks and Products
Brice Benaben · 2008
Open LibraryGoodreads

Successor survey to Benaben's earlier volume: pricing, hedging, market structure.

The Handbook of Inflation Hedging InvestmentThe Handbook of Inflation Hedging Investments
T3 The Handbook of Inflation Hedging Investments
Robert J. Greer · 2005
Open LibraryGoodreads

Inflation-linked bonds, commodities and real assets compared as inflation hedges.

A Complete Guide to the Futures MarketsA Complete Guide to the Futures Markets
T4 A Complete Guide to the Futures Markets
Jack D. Schwager · 1984
Open LibraryGoodreads

Second edition 2017 with Mark Etzkorn, titled A Complete Guide to the Futures Market.

A Demon of Our Own DesignA Demon of Our Own Design
T2 A Demon of Our Own Design
Richard M. Bookstaber · 2007
Open LibraryGoodreads

How financial innovation made markets more crisis-prone, from a risk manager.

Where it sits in the reference 1

Inflation-linked bonds and TIPS
Assets

Topics

Finance and MarketsInvesting