Index linked bond and Interest cap: Difference between pages

Latest revision as of 10:20, 2 May 2018

Tax - anti-avoidance.

Limits on corporate tax relief for interest and amounts economically equivalent to interest.

Do not confuse with an interest rate cap, which is a hedging instrument to manage interest rate risk.

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-A security paying a coupon that varies according to some underlying index (often called index linkers) - not a fixed, nominal coupon nor a coupon at a margin above a published reference rate.
+''Tax - anti-avoidance''.
-The most common class of index linked bonds are inflation linked bonds paying a coupon linked to inflation so as to provide a real return.
+Limits on corporate tax relief for interest and amounts economically equivalent to interest.
-For example UK Index Linked Gilts or US Treasury Inflation Protected Securities (TIPS).
+Do not confuse with an interest ''rate'' cap, which is a hedging instrument to manage interest rate risk.
-== See also ==
-* [[Coupon]]
-* [[Fixed rate bond]]
-* [[Index linker]]
-* [[Nominal bond]]
-* [[Treasury inflation-protected securities]]
-[[Category:The_business_context]]
+==See also==
-[[Category:Corporate_finance]]
+* [[Corporate Interest Restriction]]
-[[Category:Investment]]
+* [[Debt cap]]
-[[Category:Long_term_funding]]
+* [[Fixed ratio method]]
-[[Category:Identify_and_assess_risks]]
+* [[Interest rate cap]]
-[[Category:Manage_risks]]
+* [[Tax avoidance]]
-[[Category:Financial_products_and_markets]]
+* [[Tax relief]]
+* [[Worldwide interest cap]]
+[[Category:Accounting,_tax_and_regulation]]