Practical analysis for investment professionals

Inflation


Global Inflation-Linked Bonds: A Primer

Michael Pond, CFA, delivered an interesting primer on inflation-linked debt at the recent CFA Institute Fixed-Income Management Conference. So what are inflation-linked bonds? They are most typically debts issued by sovereign nations whose nominal interest rate is adjusted, either up or down, by an inflation measure.

Interest Rates, the Fed, and Inflation’s New Normal

If new disinflationary pressures are left unaccounted for, inflation, holding all else equal, will remain subdued, and the pace of rising rates will be slower than was expected by either the market or the Fed.

Weekend Reads: The Troll Economy in Seven Charts

There are plenty of risks to be mindful of given the current state of the markets. But a US recession is not one of them, says Will Ortel.

Three Reasons Why It Is Still a Good Time to Talk about Inflation

Is it time to put conversations about inflation risk on the back burner? Questions like this illustrate a major flaw in the way many investors approach protecting their portfolios against inflation risk: Discussion starts only after rising inflation is already a problem and inflation hedges are expensive.

Introducing the Unterest Rate

Let's stop saying "negative interest rates" and come up with a new word for a new phenomenon.

Weekend Reads for Finance Pros: Hedge Funds, Charlie Munger, and the World Cup

Charlie Munger once said: "In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none. Zero. You’d be amazed at how much Warren reads — and how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”

Inflation, the Oldest and Most Powerful Force in the Galaxy

We may believe that inflation is a relatively new phenomenon, one from the time of the birth of coins and currencies, but for those of us that live in the world of numbers and taxes, the key to the discovery was the term used for the exponential growth of particles that became planets and other objects. That term was "inflation." Thus, the term from the physical world describes a power that keeps growing.

Exploring Cross-Sectional Effects of Inflation

The US generally accepted accounting principles (GAAP) do not require adjustments for inflation, so financial statements are reported in nominal terms. This struck Yaniv Konchitchki as problematic. In his recently published article “Accounting and the Macroeconomy: The Case of Aggregate Price-Level Effects on Individual Stocks,” Konchitchki examines stock-valuation effects of aggregate price-level changes on individual companies.

Two Views on the QE Endgame: Avinash Persaud and Richard Duncan

At the recent CFA Institute India Investment Conference in Mumbai, attendees were presented with two very different perspectives on quantitative easing.



By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close