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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

TIPS

Definition:

Treasury Inflation Protected Securities. They're exactly what they sound like: treasury securities that are very low risk because they protect the investor from losses caused by inflation.

These securities are linked to the Consumer Price Index and their par value increases with inflation. The interest rate remains the same no matter what inflation does.