Inflation risk
The risk that fixed payments lose value faster than was assumed at purchase.
How to read the number
For a fixed-coupon bond this is the principal long-horizon risk: the nominal amount returns in full, the purchasing power does not.
When the metric lies
The risk is invisible in a performance report: a position can show a gain in roubles and lose in real terms at the same time, and the second half is displayed nowhere.
Also known as: purchasing power risk