Index linked bond

From ACT Wiki
Jump to navigationJump to search

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