Chilean fixed income investors are increasingly turning to index-linked notes as the ongoing war in Iran extends into its ninth month. This prolonged conflict has pushed oil prices to levels not seen since April, thereby stoking inflation expectations across the region.
According to a survey conducted by Bloomberg last week, nearly 90% of the 18 analysts and traders polled expressed a preference for bonds denominated in Unidades de Fomento, an inflation-linked accounting unit. This represents the highest percentage recorded since the monthly survey resumed in March 2025. In contrast, only two respondents indicated they would opt for traditional peso-denominated bonds.
Sources: Bloomberg Markets.