Monday, May 19, 2008

Treasury Inflation Indexed Securities or Tips May Help During A Recession

Treasury Inflation Indexed Securities also known as TIPs, are a unique
asset class, dollar denominated, inflation protected, and backed by the
faith and credit of the United States.

TIPS are marketable securities whose principal is adjusted by changes
in the Consumer Price Index. With inflation or a rise in the index, the
principal increases. With a deflation or a drop in the index, the principal
decreases.

Read The Whole Article Here

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