Bridgewater was one of the first managers of global inflation-indexed bonds and today is one of the largest and most focused active managers. We have been conducting inflation-indexed bond market research since 1992 and managing institutional portfolios since 1994.

We believe the fundamental properties of inflation-indexed bonds make them an excellent source of diversification, as well as an inflation hedge on inflation-sensitive liabilities. In our research, we have found that inflation-indexed bonds provide a competitive and known real return, have less volatility than conventional stocks and bonds, produce returns with high positive correlation with inflation and are relatively uncorrelated with other asset classes.

Bridgewater consulted to the US Treasury on the design and introduction of inflation-indexed bonds in the US in 1995 and 1996, prior to the first US issuance. In 1998, we also advised the French Tresor on the structure of and market demand for inflation-indexed bond issuance.