Category Archives: Investing in TIPS

Nice upswing today in TIPS, Treasury yields

I guess the Ben Bernanke euphoria wore off overnight, but just for bonds. The stock market took off, with both the Dow average and S&P 500 index setting record highs. (NOT adjusted for inflation, as my frequent reader Ed will … Continue reading

Posted in Investing in TIPS | 5 Comments

Today’s ‘shocker’: Fed will continue bond-buying program

No surprises here. The Federal Reserve noted that the economy is growing slowly and its strategy of near-zero interest rates and monthly bond buying will continue. I’ll just quote today’s Federal Reserve statement on the most predictable news of the … Continue reading

Posted in Investing in TIPS | 2 Comments

Honey, there’s a hole in our TIPS ladder!

Treasury Inflation-Protected Securities are almost entirely risk free when bought and held to maturity. Default risk? As close to zero as you can get. Inflation risk? Covered. Duration risk? Hold to maturity and forget it. Downgrade risk? We’ve been through … Continue reading

Posted in Investing in TIPS | 11 Comments

Why the breakeven rate is important: A TIPS versus Treasury example

I had a 10-year TIPS mature in July and I thought it would be interesting to look at how that Treasury Inflation-Protected Security performed against a traditional 10-year Treasury. Did it outperform? By how much? So here are the basic … Continue reading

Posted in Investing in TIPS | 9 Comments

Who should buy Treasury Inflation-Protected Securities?

I was updating my TIPS Q&A page today and I realized that I never really answered this question: Who should buy TIPS? So here we go … First off, I want to state loudly that TIPS are for preserving wealth, … Continue reading

Posted in Investing in TIPS | 10 Comments