Bank of England-Staff Working Paper No. 845 Eight centuries of global real interest rates

Copy of LinkedIN post, 2020

Bank of England-Staff Working Paper No. 845

Eight centuries of global real interest rates, R-G, and the ‘suprasecular’ decline, 1311–2018

Paul Schmelzing January 2020

The deviation (volatility)in inflation adjusted rates continues to drop. Is an asset allocation change coming?

Is the 60-40 portfolio moving to a 40-60 portfolio, with a LINKER, TIIS and SHARI’a compliant fixed income method that is applicable to all participants?

Our work shows a more stable purchasing power is delivered.

The current nominal to real with accretion of principal has over-whelming risk/wagers for all but sovereign issuers.

We tested defining in real(not in nominal) and used amortization. Promising results. https://lnkd.in/eR7e-cF#inflation#interestrates#capitalmarkets#tbac#bankofengland#purchasingpower#economy#liquidity#investments#assetallocation#moodys#standardandpoor’s #kroll#shari’a #islamicfinance#corporatefinance#municipalfinance#mortgagefinance#riskmanagement