Real Return Bond

Real Return Bond

A bond issued by the Bank of Canada that protects the bondholder from inflation. Most fixed dollar obligations pay a fixed coupon rate periodically and mature at par. While this carries low risk, it exposes investors to the possibility that the inflation rate will outpace the interest rate represented on the coupon. In order to protect against this, a Real Return Bond automatically changes its coupon rate according to the inflation rate as tracked by the Canada All-Items Consumer Price Index. Because Real Return Bonds are so safe, they offer very low rates of return.
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75 percentage points (for the Ontario Municipal Employees Retirement System plan) above the real return bond yield.
Treasury VUSTX American Century Target Mat 2015 Inv BTFTX Short Managers Intermediate Duration Govt MGIDX Government Fidelity Intermediate Government FSTGX Vanguard Short-term Federal VSGBX Scudder GNMA AARP AGNMX Eaton Vance Government Obligations A EVGOX Muni First Inv Insur Tax Exempt II EIITX Nationals Harris Tax Exempt Bond N HXBAX First Inv Ins Int Tax Exempt A FIITX Victory Natl Muni Bond A VNMAX Harris Insight Interm Tax Exempt Bond N HIXAX Intermediate ING Intermediate Bond A IIBAX Bonds PIMCO Real Return Bond A PRTNX ([dagger]) ING Intermediate Bond B N/A N/A Regions Morgan Keegan Select Int Bd A MKIBX FPA New Income Inc.
The weakness spread across the market, but inflation-sensitive longer-duration bonds were the most affected as the DEX Real Return Bond Index declined 13.
The federal government's real return bond (RRB) is such a security.
Fund Name (Ticker) Total Return(*) Total Return PIMCO Real Return Bond A (PRTNX) 7.
He is lead manager for Dynamic Income Fund, Dynamic Corporate Bond Fund, Dynamic Real Return Bond Fund, and Dynamic Diversified Real Asset Fund.
Final Report: An Evaluation of Canada's Real Return Bond Program, 1991-1997.
Goodman & Company") announces the creation of the Dynamic Real Return Bond Fund (the "Fund") for conservative bond investors concerned about rising inflation.
The Real Return Bond Trust, subadvised by PIMCO, seeks maximum
This edition adds new content, including a new chapter on exchange trade funds, a new section on forecasting interest rates, and expanded sections on preferred shares, convertible bonds, bond market transparency, and real return bonds.
TIPS are structured similarly to the real return bonds currently issued in Canada.
R&E has argued that this strengthens the case for immunizing a larger percentage of liabilities with real return bonds.