Inflation

This presentation gives a survey of Inflation-Linked Products. The presentation includes the following topics: Inflation-Linked Bonds, Inflation-Swaps, CPI, inflation rate, implying the CPI-curve from Market-data, risk-measures (inflation and interest-rate risk).

A practical Asset-Liability example where an Inflation-Swap is used to hedge of inflation risk on the liability side is also included.

The presentation closes off with a short introduction to the modelling of inflation.

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