Products
Inflation Derivatives
Inflation swaps, inflation caps and floors, and inflation-indexed JGBs and BEI.
Introductory1 pagePractitioner2 pages
1Inflation Derivatives
- IntroductoryInflation SwapsNo payments are exchanged when the trade starts, and the fixed rate is set so that the trade is worth zero.
- PractitionerInflation-Indexed JGBs and BEIJapan's inflation-indexed JGBs have a 10-year term and pay interest at a fixed coupon rate on the inflation-adjusted principal amount, which is the face value multiplied by the indexation coefficient.
- PractitionerInflation Caps and FloorsA cap pays the amount by which inflation exceeds the strike, and a floor pays the amount by which it falls below the strike, each times the notional amount.