Income Intermediate: Treasury Inflation-Adjusted Securities

Introduction to Treasury Inflation-Adjusted Securities Bond and Inflation Basics What Is an Inflation-Adjusted Security? Characteristics of Inflation-Adjusted Securities Advantages of Inflation-Adjusted Securities Taxation of Inflation-Adjusted Securities Summary of Treasury Inflation-Adjusted Securities
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Introduction to Treasury Inflation-Adjusted Securities

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In this tutorial, you will learn about a special type of government bond created to combat the danger of inflation.

What you will learn

  • Bond and Inflation Basics
  • What Is an Inflation-Adjusted Security?
  • Characteristics of Inflation-Adjusted Securities
  • Advantages of Inflation-Adjusted Securities
  • Taxation of Inflation-Adjusted Securities

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Introduction to Treasury Inflation-Adjusted Securities

People often choose to invest in United States Treasury-backed securities because of the bonds’ perceived safety from default. One disadvantage of investing in bonds had always been the risk of losing purchasing power as the result of inflation. For this reason, the US Treasury developed a new type of security—the inflation-adjusted bond.