Treasury Inflation-Protected Securities: what are the benefits and drawbacks of buying TIPS?

Treasury Inflation-Protected Securities

In two to three paragraphs.

Inflation-linked bonds, also known as treasury inflation-protected securities (TIPS), are used to protect against inflation. A good understanding of TIPS is necessary for capitalizing on market opportunities.

  • Write an initial post in which you explain the relationship between TIPS and the consumer price index.
  • What are the benefits and drawbacks of buying TIPS?