Corporate Inflation-Linked Securities
Corporate debt financing securities that offer their holders protection against fluctuations in the rate of inflation as measured by the consumer price index (CPI). The yields of these securities adjust monthly with respect to the current rate of inflation. Investopedia Says:
Although they are not as common as conventional debt instruments, inflation-protected corporate debt can provide an investor with a balanced risk exposure: these securities pose all of the normal risks associated with regular corporate debt securities - such as default risk - but they remove the possibility of inflationary changes eroding their real returns. Related Terms:
Consumer Price Index - CPI
Corporate Bond
Default Risk
Dollar Bond Index-Linked Securities (Dollar BILS)
Hyperinflation
Inflation-Indexed Security
Inflation-Protected Security
Inflationary Psychology
Inflationary Risk
Real Return |