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U.S. TIPS Strategy

Wilby Securities ("WS") has been a leader in U.S. Treasury Inflation-Protected Security (TIPS) research, thought leadership, and active management since the U.S. TIPS market's inception in 1997. Our U.S. TIPS strategy aims to provide investors with protection against future inflation by primarily investing in U.S. TIPS. Our investment process is focused on the long term, employing a range of proven strategies within the inflation-indexed markets, diversifying to avoid reliance on any single tactical approach. This "Pure Play" approach avoids credit and real-asset exposures, along with unrelated volatility, to focus solely on inflation.

Investment Criteria:

Our investment process is built on independent research, combining quantitative and qualitative analysis as its core. We leverage market inefficiencies in the U.S. TIPS and non-U.S. inflation-indexed markets, employing three primary strategy categories:

  • Fundamental Strategies: Utilizing proprietary quantitative models, our investment team identifies real rate levels and curve slope historically inconsistent with current economic fundamentals. This analysis, coupled with the experience of our team, drives occasional modest duration or yield curve positions relative to the index.
  • Non-Directional Strategies: Our research reveals consistent and recurring inefficiencies within the U.S. TIPS market. Our investment team often adjusts our portfolio to capture the relative excess return available from these inefficiencies, resulting from auction cycles, seasonal patterns, performance index extensions, inflation accruals, and roll down.
  • Opportunistic Strategies: These strategies involve out-of-index positions in the U.S. Treasury market and non-U.S. sovereign inflation-indexed markets.