Want positive real returns? Brazil Tops PIMCO Index
- Sunday, April 14, 2013, 13:50
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PIMCO doesn’t publicize it, but they have several bond market indexes. One index tracks global inflation linked bonds. Most investors are familiar with the TIPS, the US Treasury’s inflation linked bond offering. Many governments offer inflation linked bonds. The yields on these bonds are different from one country to another, as each country has different interest rates and rates of inflation. The yield on an inflation linked bond is very revealing, as it indicates what the market thinks the return will be on a normal bond (fixed coupon payments) after deducting for inflation.
The table below shows real yields (based on the yields of inflation linked bonds) from the GLADI-Inflation Linked Bond Index on April 1st, 2013
http://www.forbes.com/sites/marcprosser/2013/04/14/want-positive-real-returns-brazil-tops-pimco-index/