by modelling the time-varying dynamics of asset returns and inflation, and then estimating the cost of hedging in ation … inflation risks are not necessarily reduced with the inclusion of real estate assets in the minimum variance portfolio. Our … investors for holding the less attractive inflation-linked debt asset. …

We argue that corporate bond yields reflect fears of debt deflation. When debt is nominal, unexpectedly low inflation …, more uncertain or pro-cyclical inflation leads to quantitatively important increases in corporate log yields in excess of … basis points if inflation volatility or the inflation-stock correlation increases by one standard deviation …