A majority of executives from pension funds and endowments and foundations said they would have some interest in the Treasury Department's proposed issuance of inflation-linked bonds, according to a survey conducted by Goldman Sachs' Pension Services Group.
All of the corporate pension fund respondents said they intend to study the bonds; only 50% of public fund respondents said they have immediate plans to study them. Inflation protection was cited as the primary role for the bonds. Portfolio diversification and active trading opportunities were secondary and tertiary objectives.
The consumer price index for all urban consumers was chosen by 83% of the respondents as the preferred inflation index.