Monday, October 25, 2010

Negative Bond Yields

Investors are accepting negative returns on TIPS. Remember TIPS pay the bond holder a nominal return plus the inflation rate. If they are willing to accept a negative nominal return it must be they are expecting higher inflation.

1 comment:

  1. It’s always interesting to read this sort of stuff because they make notice able difference. However, if we want solid returns over investment then we must do it all very accurately and with sensible approach. I prefer to invest only with OctaFX broker who is special by all logical reasons and ways. I love it so much with their 50% bonus on deposit scheme which is use able too and makes thing ever so nice and easy to work out.