Treasury Inflation Protected Securities

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The speaker from Morningstar offers alternatives to treasury inflation protected securities, or TIPS.  TIPS have become very expensive, driving yields way lower and providing the investor with a negative rate of return in some cases.  The speaker suggests that

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    Video: 

    The speaker covers the basics of a treasury inflation protected security, or TIPS.  TIPS are tied to the consumer price index and adjust the value of your bond by the increase(decrease) in ths index.

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    What is an Inflation Protected Security?

    TIPS, or Treasury Inflation Protected Securities were introduced into the bond market in early 1997.  TIPS are issued by the United States government and therefore have no default risk associated to them.  As with Treasury bonds, TIPS are issued through the

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