Global Bond Traders Are Seeking Protection From Inflation Threat
- Recession fears have pushed market gauges of inflation lower
- Amundi, RLAM are buying hedges against future rise in prices
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Just as bond traders grow more assured that inflation is finally under control, a camp of investors is quietly building up protection against the risk of a future spike in prices.
These fund managers are amassing positions that would cushion fixed-income returns in the event of an inflation shock. Wall Street strategists are also recommending taking advantage of declines in market-based gauges of future inflation to build up protection on the cheap.