Inflation-Protected Security (IPS)
A type of fixed-income investment that guarantees a real rate of return. The real rate of return is the nominal return, less the inflation rate, thus protecting investors from inflation. Investopedia Says:
The purchase of IPS products is most often done with government products, such as Treasury inflation-protected securities (TIPS), but private sector companies also offer these products. Related Terms:
Corporate Inflation-Linked Securities
Dollar Bond Index-Linked Securities - Dollar BILS
Inflation
Inflation Risk
Inflation-Linked Savings Bonds - I Bonds
Nominal Interest Rate
Real Rate of Return
Securitization
Treasury Inflation-Protected Securities - TIPS |