Course 03 · Capital Markets Trading & Risk Academy

Inflation & Real Rates

Price the linker. Read the breakeven. Separate real from nominal.

Each chapter description below contains 30-50 words. Full chapters must add the precise index series, issuer and instrument terms, dated index observations, lag and interpolation rule, reproducible worked example, desk decision, independent answer key, and assessed artifact. Use spreadsheets as a baseline and optional code for larger scenarios. Never equate breakeven with pure expected inflation or assume a redemption floor applies identically in every market.

100 chapters · 10 modules · beginner to advanced · spreadsheet first, Python and SQL optional

Enrol or enquire See the 100 chapters
The continuous case

One book, carried through all ten modules

The fictional Meridian Real Rates Desk begins with the Course 01 nominal bond inventory and Course 02 approved rates hedges. It adds U.S. TIPS, UK index-linked gilts, euro-area inflation-linked sovereign bonds, and client inflation exposure. No actual historical trade or issuer data are implied by numerical examples. The same dated data snapshot and contracts grow into a final real-rates desk and client-risk pack.

The firm, positions, prices and counterparties are fictional teaching inputs. They do not describe any real institution or transaction.

Curriculum

10 modules · 100 chapters

Each module closes with an artefact, and the ten artefacts accumulate into the final pack the learner defends. Chapters build in order rather than standing alone.

M1 Inflation exposure and real-rate decisions Ch 1-10
  1. The Inflation Exposure the Bond Hedge Missed
  2. Nominal Versus Real Cash Flows
  3. A Price Index Is a Contract Term
  4. Inflation Rates, Levels, and Observation Dates
  5. Real Yield and Inflation Compensation
  6. Who Trades Inflation and Why
  7. Policy Rates, Supply Shocks, and Real Rates
  8. Contractual Inflation Versus Economic Inflation
  9. Build Meridian's First Inflation Exposure Map
  10. Foundation Capstone: Protect the Client Payment
M2 Index data, lags, and reference calculations Ch 11-20
  1. U.S. CPI Series Used by TIPS
  2. UK RPI and Linked-Gilt References
  3. French CPI and Euro-Area HICP Ex Tobacco
  4. Publication Lag and Known Versus Forecast Index
  5. Daily Reference Indices and Interpolation
  6. Base Index, Rebasing, and Index Ratios
  7. Seasonality of Monthly Price Indices
  8. Revisions, Corrections, and Fallbacks
  9. Index Source Lineage and Historical Replay
  10. Data Capstone: A Wrong Inflation Fixing
M3 U.S. TIPS cash flows and valuation Ch 21-30
  1. TIPS Security Terms and Issuance
  2. Indexed Principal and Coupon Calculation
  3. TIPS Redemption Floor at Maturity
  4. TIPS Clean Price, Accrued Interest, and Settlement
  5. Real Yield to Maturity on an Indexed Bond
  6. TIPS Real-Duration and Inflation Exposure
  7. TIPS Auction and Secondary-Market Liquidity
  8. Deflation Scenarios and Floor Optionality
  9. TIPS P&L: Real Rates, Inflation, and Carry
  10. TIPS Capstone: The Phantom Inflation Gain
M4 UK and euro inflation-linked sovereign markets Ch 31-40
  1. Index-Linked Gilt Cash-Flow Architecture
  2. Historical Gilt Indexation Lags
  3. UK RPI Reform as Contract and Model Risk
  4. French OATi Versus Euro-Area OAT€i
  5. Euro-Area HICP Ex Tobacco and Base Changes
  6. Linker Quotation and Settlement Across Markets
  7. Nominal Comparators for UK and Euro Linkers
  8. Cross-Market Inflation Basis
  9. Local Market Data and Independent Marks
  10. Regional Capstone: Three Bonds, Three Results
M5 Real curves, breakevens, and inflation compensation Ch 41-50
  1. From Linker Prices to a Real-Yield Curve
  2. Real Discount Factors and Forward Real Rates
  3. Matching Nominal and Real Bonds
  4. Spot and Forward Breakeven Curves
  5. Inflation Risk Premium and Liquidity Premium
  6. Seasonality and Short-Dated Breakevens
  7. Breakeven Carry and Roll-Down
  8. Breakeven P&L Explain
  9. Relative Value Across Linkers and Inflation Swaps
  10. Curve Capstone: The Breakeven Headline Is Wrong
M6 Inflation swaps and index-linked cash-flow trades Ch 51-60
  1. Zero-Coupon Inflation Swap Contract
  2. Zero-Coupon Swap Payoff and Quoted Rate
  3. Year-on-Year Inflation Swap
  4. Inflation Swap Index and Calculation Terms
  5. Build an Inflation Swap Curve
  6. Seasonality in Inflation Swap Pricing
  7. Discounting, Collateral, and Inflation PV
  8. Swap Sensitivities by Inflation Tenor
  9. Inflation Swap P&L and Fixing Explain
  10. Swap Capstone: Hedge an Indexed Pension Payment
M7 Inflation optionality and advanced real-rate structures Ch 61-70
  1. Inflation Floors and Deflation Protection
  2. Zero-Coupon Inflation Caps and Floors
  3. Year-on-Year Inflation Options
  4. Inflation Volatility Quotes and Model Choice
  5. Deflation Floor Valuation and Path Dependence
  6. Inflation-Real-Rate Correlation
  7. Structured Index-Linked Cash Flows
  8. LPI and Contract-Specific Inflation Caps
  9. Model Validation of Inflation Optionality
  10. Options Capstone: The Hidden Deflation Exposure
M8 Real-rates trading, hedging, and funding Ch 71-80
  1. Nominal Versus Linker Breakeven Trade
  2. Cash Linker Versus Inflation Swap Basis
  3. Real-Rate Hedge with Nominal Swaps
  4. Hedge a Near-Term CPI Fixing
  5. Cross-Index Basis and Client Fit
  6. Funding and Margin in a Real-Rates Trade
  7. Auction, Liquidity, and Event Risk
  8. Cross-Market Real-Rates Relative Value
  9. Intraday Hedge Drift and P&L Defense
  10. Trading Capstone: A Breakeven Trade Unravels
M9 Inflation risk, controls, and client governance Ch 81-90
  1. Map Inflation and Real-Rate Risk Factors
  2. Sensitivities to Index Prints and Curves
  3. Historical VaR with Sparse Inflation Data
  4. Inflation Stress and Full Revaluation
  5. Index Reform, Disruption, and Basis Stress
  6. Backtesting and Inflation P&L Explain
  7. Independent Price Verification and Reserves
  8. Limits, Concentrations, and Escalation
  9. Client Communication and Conduct Controls
  10. Risk Capstone: A CPI Data Correction
M10 Integrated Meridian real-rates desk defense Ch 91-100
  1. Freeze the Opening Multi-Market Portfolio
  2. Build an Inflation Thesis with Alternatives
  3. Price Index-Linked Cash Flows Independently
  4. Trade and Fund the Real-Rates Book
  5. Produce Nominal and Real P&L Explain
  6. Measure Multi-Factor Risk and VaR
  7. Run Joint Inflation and Liquidity Stress
  8. Independent Valuation and Model Challenge
  9. Present the Client and Risk Committee Packs
  10. Final Defense: Inflation Shock and Index Basis
How it is delivered

Three ways to take Inflation and Real Rates

Self-paced is a document-and-media programme with lifetime access - no live sessions. Cohort and enterprise add live instructor-led training. Mentorship is not offered in any tier.
Feature Self-paced Cohort Enterprise
Format Written chapters, video explainers and podcasts Everything in self-paced, plus scheduled live sessions Everything in cohort, delivered privately to your team
Live sessions None Scheduled, instructor-led Scheduled, instructor-led, private
Mentorship Not offered Not offered Not offered
Access Lifetime Lifetime Lifetime for every enrolled seat
Pace Entirely your own Guided schedule with a peer group Agreed with your desk
Tailoring Fixed curriculum Fixed curriculum Sequenced to your markets, systems and governance
Best for Individuals learning around a job Individuals who want structure and deadlines Desks building the same capability together
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Each course stands alone. Taken in order, the ten build one cross-asset trading and risk capability.

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