View Single Post
  #4  
Old 09-10-2007, 12:00 PM
SlowHabit SlowHabit is offline
Senior Member
 
Join Date: Apr 2006
Posts: 1,509
Default Re: A question on TIPS

[ QUOTE ]
[ QUOTE ]
Principle is adjusted down if deflation.

[/ QUOTE ]

there is a limit though...you can't owe money (i.e. if deflation occurs for the life of the bond, you are paid your initial principal)

Barron

[/ QUOTE ]
Yeah, this was the main point of my question. It's *awkward* that one loses money investing in US bonds.
Reply With Quote