Join our specialist for the webcast on 22 March
Since Donald Trump’s election as US president last November, breakeven inflation rates implied by yield spreads between nominal bonds and Treasury inflation-protected securities (TIPS) have risen sharply. This may reflect growing market expectations for higher inflation in the years ahead.
TIPS are indexed to inflation to protect investors from the negative effects of consumer price rises on purchasing power. Their par value rises with inflation, as measured by the consumer price index, while the bond’s coupon remains fixed. TIPS are backed by the US government.
The securities combine relatively low volatility with the potential to generate beneficial inflation-adjusted returns.1 A further characteristic is the so-called deflation floor, in other words, investors will not receive back less than the nominal value of the principal at maturity.
During this 30-minute webcast, our specialist, Cedric Scholtes, will discuss his views on how fiscal and monetary policy developments could impact inflation and TIPS valuations.
Join us for this webcast
Wednesday, 22 March 2017
10:00 US EDT / 14:00 GMT / 15:00 CET
As a participant in the CFA Institute Approved-Provider Programme, BNP Paribas Investment Partners has determined that this programme qualifies for 0.5 credit hours. If you are a CFA Institute member, CE credit for your participation in this programme will be automatically recorded in your CE tracking tool.
Please note that this article and the webcast to which it refers can contain technical language. For this reason, neither is recommended to readers without professional investment experience.
1 Source: US Treasury https://www.treasury.gov/resource-center/fin-mkts/Pages/tips.aspx
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