IEF Capital Inflation Swap
The IEF Capital Inflation Swap offers investors a perfect hedge for their inflation-related long-term liabilities. The payout from this product exactly equals the annual increase in the pension-fund liability. Its principal equals that of the initial principal plus the cumulative coupon increase. Each year the investor receives a cumulative amount based on the increase in Dutch CPI inflation over an initial coupon. IEF Capital is the only party offering long-term Dutch Inflation Swaps. Typical durations for these products are between 20 and 30 years.
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