Investing in an Inflationary Environment

Given the amount of fiscal and monetary stimulus enacted to revive the United States economy, many investors are concerned about inflation emerging as a credible threat to their portfolios, as inflation can reduce the real rate of return. While high inflation is not foreseeable in the near future, it is prudent to understand how to preserve a portfolio’s real rate of return during times of rising prices. Several asset classes can protect against higher than expected inflation, with varying degrees of statistical proof. The following paper examines the potential asset classes suitable for periods of high inflation, both on a qualitative and quantitative basis.

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Understanding TALF

In an effort to revive the credit markets, the Term Asset-Backed Securities Loan Facility (“TALF”) was established by the government as a means to promote private investment in the asset-backed securities market. Asset managers have been quick to move on this program, using TALF loan facilities to create TALF funds for interested clients. In the following paper, we investigate the TALF program and how it could provide liquidity to the credit market as well as attractive return opportunities for investors.

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