DEFINITION of 'Corporate Inflation-Linked Securities'

Corporate debt financing securities that offer their holders protection against fluctuations in the rate of inflation as measured by the consumer price index (CPI). The yields of these securities adjust monthly with respect to the current rate of inflation.

BREAKING DOWN 'Corporate Inflation-Linked Securities'

Although they are not as common as conventional debt instruments, inflation-protected corporate debt can provide an investor with a balanced risk exposure: these securities pose all of the normal risks associated with regular corporate debt securities - such as default risk - but they remove the possibility of inflationary changes eroding their real returns.

  1. Debt Security

    A debt security is an instrument bought or sold between two parties ...
  2. Secured Debt

    Secured debt is debt backed or secured by collateral to reduce ...
  3. Inflation-Protected Security - ...

    A type of fixed-income investment that guarantees a real rate ...
  4. Headline Inflation

    The raw inflation figure as reported through the Consumer Price ...
  5. Income Deposit Security - IDS

    A security that combines common stock and notes of the issuer ...
  6. Treasury Inflation Protected Securities ...

    Treasury inflation protected securities are securities that are ...
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