Index linked bond: Difference between revisions
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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. | 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. | ||
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. | 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. | ||
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* [[Coupon]] | * [[Coupon]] | ||
* [[Fixed rate bond]] | * [[Fixed rate bond]] | ||
* [[Index | * [[Index-linked gilt]] | ||
* [[Nominal bond]] | * [[Nominal bond]] | ||
* [[Treasury inflation-protected securities]] | * [[Treasury inflation-protected securities]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Investment]] | |||
[[Category:Long_term_funding]] | |||
[[Category:Identify_and_assess_risks]] | |||
[[Category:Manage_risks]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 16:13, 1 July 2022
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.
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.
For example UK Index Linked Gilts or US Treasury Inflation Protected Securities (TIPS).
