Inflation-Linked Instruments
Description
Inflation-linked instruments are financial instrument which performance is depended on the changes of the inflation
index. Inflation-linked securities were first introduced by sovereign states in order to respond to an increasing need
for inflation hedging. These securities guarantee a return higher than the rate of inflation if they are held to maturity.
These real return securities usually come in the form of a bond or note. Many investors prefer inflation protection
from derivatives (swaps or options) because unlike inflation-indexed bonds, a significant amount of capital isn't
required and it's more flexible. The course covers key features of Inflation-Linked Instruments
is issued on the Luxoft Training form
Objectives
To provide the audience the understanding of Inflation-Linked Instruments, their types, participants, and risks.
Target Audience
Testers, System and Business Analysts, Architects, Developers, and Project Managers working on corporate finance
projects
Prerequisites
FIN-001 Introduction into Financial Markets
FIN-023 Introduction into Derivatives
FIN-005 Basics of Financial Markets. Fixed Income and Fixed Income Derivatives
Roadmap
Inflation: basic theory
Inflation-linked bonds
Inflation-linked derivatives