Inflation-indexed securities

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Inflation-indexed securities

Securities such as bonds or notes that guarantee a return higher than the rate of inflation if the security is held to maturity.

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 ?
The Reserve Bank of India (RBI) will launch two new instruments by the end of this year: inflation-indexed national saving securities (IINSSes) and cash-settled 10-year interest rate futures (IRFs).
Although the popular press often labels inflation-indexed bonds as "exotic securities," nothing could be farther from reality.
18726), Richard Clarida derives a structural relationship between the nominal exchange rate, national price levels, and observed yields on long maturity inflation-indexed bonds.
5 percent in 2013, however economists fear inflation-indexed pension hikes could make that target impossible as prices rise.
The topics discussed include rediscovering the macroeconomic roots of financial stability policy, inflation-indexed bonds and the expectations hypothesis, the economics of credit default swaps, equilibrium in the initial public offering market, and carry trade and momentum in currency markets.
One is the spread between nominal Treasuries and inflation-indexed Treasuries, and the other is inflation swap rates.
The Ministry of Strategy and Finance has announced plans to spur trading in inflation-indexed government bonds, as part of an effort to diversify the Korea Treasury Bond (KTB) market.
3m in inflation-indexed 25-year bonds at a yield of 3.
Treasury Inflation-Protection Securities were first issued in January 1997 and are currently available in the form of 5-year, 10-year, and 30-year inflation-indexed notes.
ABSTRACT This paper explores the history of inflation-indexed bond markets in the United States and the United Kingdom.
The invention of inflation-indexed bonds in early America.
Inflation-indexed bonds TIPS (Treasury Inflation-Protected Securities) are designed to protect investors from inflation, says Kathy Williams, who has a financial services firm in Oklahoma City.