Canada Real Return Bonds (RRBs) are federal government issued and guaranteed bonds where coupon payments and principal are adjusted to inflation. The inflation-sensitive aspect of RRBs has made them an attractive asset for Canadian investors, particularly for those employing liability-driven investment (LDI) strategies. A successful inflation hedging solution supplements nominal bonds by providing exposure to both the realized inflation and inflation breakeven (market implied) rate so that portfolio cashflows and valuation move in line with that of liabilities that are sensitive to inflation.