Summary

The reference has not verified this book in detail; the summary states only what the title, author and subject establish.

This is a practitioner volume on inflation-linked instruments edited by Brice Benaben, covering index-linked bonds, inflation swaps and structured products that transfer inflation exposure between institutional counterparties. It belongs to a series of technical banking references and predates the editor's later related volume on inflation risks and products.

The reference has not yet verified this book's contents in detail. Its subject is established by the title and by the editor's work in the inflation derivatives market at the time, and this entry does not assert more than that. Readers seeking a verified technical reference should prefer Deacon and Derry's Inflation-Indexed Securities.

Key takeaways 5

Inflation-linked products transfer price-index risk between parties with opposite exposures, principally pension funds and inflation-earning issuers.
Zero-coupon inflation swaps became the standard instrument for expressing views on inflation separately from nominal rates.
Structured inflation products embed optionality whose value depends on the assumed distribution of future price indices.
European and United Kingdom inflation markets developed around different indices and different institutional demand, so the two are not interchangeable.
Inflation-linked issuance by corporates is rare, so the supply of protection comes overwhelmingly from governments and from dealers running the risk.

Who should read it

Fixed income practitioners looking for a technical treatment of inflation-linked instruments, with the caveat that this entry is not verified in detail.