Index linked bond

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).

See also

• Coupon
• Fixed rate bond
• Index linker
• Nominal bond
• Treasury inflation-protected securities