Tag Archives: TIPS

Treasury-Inflation Protected Securities

Treasury-Inflation Protected Securities, also known as TIPS, are securities whose principal is tied to the Consumer Price Index.  With inflation, the principal increases.  With deflation, it decreases.  When the security matures, the U.S. Treasury pays the original or adjusted principal, whichever is greater. TIPS pay interest every six months, based on a fixed rate applied to [...]
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Inflation Risk

What is inflation? When you see the term inflation in the media, it refers to a change in the Consumer Price Index (CPI), which tracks the cost of goods and services typically purchased by consumers.  This government figure is good for measuring economic activity for the country at large, but does little for individuals who have [...]
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