Special form of index-linked bond. At the time of issue, it offers a higher interest rate than comparable securities. However, the redemption amount is linked to a contractually agreed index. As soon as this index moves beyond an agreed fluctuation range, the redemption amount paid out to the bondholder is reduced. As a rule, however, a certain minimum repayment amount is agreed, which is independent of the index level (minimum repayment sum). – See bond, index-linked, break-even inflation rate, issue, index-linked, haven, safe, index-linked bond, index fund, distressed assets, swap, inflation-linked, interest rate swap.
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