it does retain exposure to the slope of the inflation-linked yield curve
Chinese translation: 收益曲线
Login or register (free and only takes a few minutes) to participate in this question.
You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
22:17 Nov 9, 2003
English to Chinese translations [PRO] Bus/Financial
English term or phrase:it does retain exposure to the slope of the inflation-linked yield curve
More interesting is an example from the Dutch market, where inflation is higher than the HICP average. In 2002 and 2003, Rodamco, a e6.5 billion real estate investment fund based in Rotterdam, sold e510 million of Dutch commercial property with domestic inflation-linked rents to IEF Capital, a joint venture between the inflation boutique Inflation Exchange Fund and ABN Amro subsidiary Bouwfonds Asset Management. Using a series of 20- to 30-year swaps with notionals of about e120 million, IEF Capital has paid this inflation to Dutch pension funds including health sector fund PGGM and metalworking fund BPMT, thus matching their future liabilities. As these examples demonstrate, payers of euro inflation tend to involve much longer maturities than the retail market receivers, which are concentrated around the five-year mark. So while a dealer may have hedged an outright inflation risk, it does retain exposure to the slope of the inflation-linked yield curve. Deutsche’s Zuberi comments: “Banks have been looking for ways to hedge their curve exposure.”