Inflation-Protected Security - IPS


DEFINITION of 'Inflation-Protected Security - IPS'

A type of fixed-income investment that guarantees a real rate of return. The real rate of return is the nominal return, less the inflation rate, thus protecting investors from inflation.

BREAKING DOWN 'Inflation-Protected Security - IPS'

The purchase of IPS products is most often done with government products, such as Treasury inflation-protected securities (TIPS), but private sector companies also offer these products.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Nominal Interest Rate

    The interest rate before taking inflation into account. The equation ...
  3. Treasury Inflation Protected Securities ...

    A treasury security that is indexed to inflation in order to ...
  4. Inflationary Risk

    The uncertainty over the future real value (after inflation) ...
  5. Real Rate Of Return

    The annual percentage return realized on an investment, which ...
  6. Securitization

    The process through which an issuer creates a financial instrument ...
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