Managing the issuance of inflation bonds

No one can have failed to notice that inflationary pressures have been building in the UK. Gas, elec...

No one can have failed to notice that inflationary pressures have been building in the UK. Gas, electricity and petrol prices are all up. Few doubt that inflation is trending higher – the question is how to gain from it. It's hardly surprising that inflation or index-linked gilts have been performing well lately, but they are still an attractive option. Though often dismissed as a bit of a backwater, they make up about a quarter of the entire UK gilt market, and the asset class is evolving – it is getting bigger and more sophisticated. Typical arguments against index-linked bonds are that ...