The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Inflation-linked debt issues to rise

More inflation-linked bonds from non-sovereign European issuers could be a feature of the debt capital markets in 2005 as the inflation derivatives market grows.

The success of Italy's 30-year, 2.35% BTPei last September and Cades's e1 billion 15-year inflation-linked benchmark bond in November, the French agency's longest inflation-linked bond to date, showed how demand for linkers has grown with the need to match real liabilities.

The fact that breakevens have widened since the first European linkers were issued shows investors are also ready to receive a lower yield in return for inflation. Linkers are less volatile than conventional bonds in a rising rate environment. And long-dated investors in inflation are here to stay.

Cades will issue between e2 billion and e5 billion of inflation-linked debt this year. Non-sovereign issuers other than Cades have been constrained by not having inflation liabilities. ?We have done some small inflation-linked deals and we like linkers,? says Horst Seissinger, head of capital markets at KfW. ?But we have to rely on a window in the swap market, and that is still developing.?

The question is, is it already developed enough? Some bankers think so.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?