Indexed bond

Indexed bond

Bond whose payments are linked to an index, e.g., the consumer price index.

Inflation-Indexed Securities

A bond or other fixed-rate security with an interest rate that varies according to inflation. An inflation-indexed bond, for example, may pay a fixed coupon plus an additional coupon with the amount adjusted every so often according to some inflation indicator, such as the Consumer Price Index. If these securities are held to maturity, then the investor guarantees that the return will exceed the rate of inflation. Inflation-indexed securities exist to provide a low-risk investment vehicle in which the return is guaranteed not to fall below the rate of inflation. See also: I Bond.
References in periodicals archive ?
This indexed bond contributes to making our portfolio far more diverse.
Second, we assume the government can issue an indexed bond that promises a next-period payment that is a function of next-period income.
An increase in the spread between the nonindexed bond and the indexed bond indicates an increased expectation of more inflation and vice versa.
The traditional approaches of fixed income or indexed bond oriented strategies have limitations which we do not want to accept," it said.
As one of many possible hypothetical examples, one might regard the protection provided by an indexed bond against unanticipated inflation to be of greater value during a boom than during a recession.
This is despite the Government's relatively successful US-dollar indexed bond offered last week.
Thus, an indexed bond purchased at time t pays one unit of the endowment good with certainty at time t + 1.
Among the 12 funds included in the allocations are: MainStay Large Cap Growth Fund, MainStay All Cap Growth Fund, MainStay Common Stock Fund, MainStay Map Fund, MainStay Small Cap Opportunity Fund, MainStay Small Cap Value Fund, MainStay Value Fund, MainStay International Equity Fund, MainStay Floating Rate Fund, MainStay High Yield Corporate Bond Fund, MainStay Intermediate Term Bond Fund and MainStay Indexed Bond Fund.
Professors Kothari and Shanken created a series of prices and computed the corresponding returns for a hypothetical zero-coupon indexed bond as if it had existed back to 1953 (The U.
Bankers Trust is a recognized market leader in the Australian inflation indexed bond market and established an Inflation Linked Capital Markets business in New York in August 1996.
Upon consummation, all bondholders will receive for each $1,000 old silver indexed bond a new $800 principal amount silver indexed bond and $200 in market value of Sunshine common stock.
5 million principal amount) will be redeemed for $200 market value of Sunshine Mining common stock and a new Silver Indexed Bond with a face value of $800.