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 ?
One can also look at tax-free bonds, non-convertible debentures, or NCDs, and inflation-indexed bonds.
The 10-year inflation-indexed bonds launched earlier this year, linked to the Wholesale Price Index could not attract much interest from investors.
Although the popular press often labels inflation-indexed bonds as "exotic securities," nothing could be farther from reality.
The finance minister also made several promises: A pilot programme to promote micro-nutrients, a National Livestock Mission, inflation-indexed bonds, a new corporate tax avoidance tax from 2016, a direct tax code and a new bill for a pan-India goods and services tax this session.
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.
Sure, some might argue that inflation-indexed bonds offer a better and more direct inflation hedge than gold.
While some governments issue inflation-indexed bonds to protect investors from the effects of inflation, Egypt's standard government bonds do not.
In the second paper, John Campbell, Robert Shiller, and Luis Viceira present a thorough accounting of what has been learned from the first quarter-century of experience with inflation-indexed bonds in the United Kingdom and the first decade of experience in the United States.
It allows any mix of equities, nominal bonds, inflation-indexed bonds and cash in the portfolio.
To supply liquidity in government bond markets, the government said it will boost the buyback amount from 3 trillion yen initially planned for fiscal 2008 to 4 trillion yen, and especially purchase 10-year inflation-indexed bonds and 15-year floating rate government bonds for retirement.
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.
Lashgari (2000) examined the monthly yields of inflation-indexed bonds and nominal bonds and found that TIIS yields have ".