Daily Archives: April 3, 2015

Hedging long-term inflation-linked liabilities under various inflation regimes without inflation-linked instruments

Lionel Martellini, Professor of Finance, EDHEC Business School, Scientific Director, EDHEC-Risk Institute; Vincent Milhau, Deputy Scientific Director, EDHEC-Risk Institute

A long-term concern over possible enhanced inflation uncertainty has increased the need for investors to hedge against changes in price levels, a problem of particularly critical importance for pension funds that have pension payments explicitly indexed with respect to changes in consumer price levels. Read more