Inflation-Protected Security - IPS
A type of fixed-income investment that guarantees a real rate of return. The real rate of return is the nominal return, less the inflation rate, thus protecting investors from inflation.
Investopedia Commentary
The purchase of IPS products is most often done with government products, such as Treasury inflation-protected securities (TIPS), but private sector companies also offer these products.
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See also: Corporate Inflation-Linked Securities, Inflation, Inflation Risk, Inflation-Linked Savings Bonds (I Bonds), Nominal Interest Rate, Real Rate of Return, Treasury Inflation-Protected Securities - TIPS
Also spelled: IPS