Fixed-income security for which – the redemption amount and/or – the
interest rates are contractually linked to an index; usually to the cost-of-living price index. The interest rate on an index-linked bond is normally lower than that on an ordinary bond. Thus, the investor pays for the value maintenance (value maintenance through linkage to an index) with a loss of interest. – See bond, index-linked, condor bond, issue, indexed, haven, safe, index fund, index tracking, distressed investments, swap, inflation-indexed, interest rate swap.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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