The bond market is the most liquid in the world and twice the size of the equities market. Treasury Inflation Protected Securities (T.I.P.S.) is a relatively recent floating rate bond product that has been invigorated due to rising inflation rates.
There are some very unique and beneficial features of T.I.P.S. including: the par value is adjusted for inflation, they offer a range of maturities and you can purchase them in small increments.
Watch it to find out:
- The benchmark T.I.P.S. bonds use to adjust interest rates;
- The key differences between fixed rate, standard floating rate and T.I.P.S. bonds;
- How to purchase T.I.P.S. bonds without paying a commission;
- Who the custodian of T.I.P.S. bonds is and how much it costs for the service.
With interest rates rising from historical lows and possibly inflation too, this video explores how T.I.P.S. can help your portfolio while leveling the playing field for retail investors and financial institutions.
CONTENT QUOTIENT: Timely
About the Author
Mr. Addiss develops and facilitates educational programs for a variety of major financial institutions, government agencies and foreign governments.