Inflation derivatives house of the year: Royal Bank of Scotland

The inflation derivatives market is characterised by long-dated trades, big notional sizes, a lack of liquidity and – where corporate clients are involved – a lack of collateral. In other words, it is exactly the kind of business that will be punished by incoming bank capital rules. To address some of these constraints, the market has embraced pay-as-you-go swaps in recent years, in which the traditional balloon payment at the maturity of the contract can be staggered throughout its life