Emerging market inflation-linked bonds
Financial Analysts Journal , Volume 68 - Issue 5 p. 38- 56
Investigating the value added by inflation-linked bonds in investment portfolios in emerging markets, the author found that the inclusion of inflation-linked bonds improved the risk-return characteristics of investment portfolios in many of the emerging markets. He also found that inflation-linked bond returns correlate more positively with realized inflation than do nominal bonds, even in the short run. Thus, investors should consider adding emerging market inflation-linked bonds to their investment portfolios.