Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 6337

Investing - Theory, News & General • How risky is interest rate risk in TIPS ladders longer than 30 years?

$
0
0
<SNIP>
Does anyone know why they are not available?

Probably the same reason inflation adjusted annuities in the U.S. are not available - demand/interest is low. When TIPS rates are negative why would anyone want to buy one? Even when rates are positive but only slightly above zero, the bond is essentially very close to a STRIP. Again, why would anyone go to the trouble to create a STRIP? It is only recently that coupon rates are higher so maybe soon someone will create TIPS STRIPS. But I am not optimistic as I suspect that those who would are waiting to see if higher coupon rates persist.

Wrench

Statistics: Posted by Wrench — Sat Jun 29, 2024 8:07 am — Replies 51 — Views 2979



Viewing all articles
Browse latest Browse all 6337

Trending Articles



<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>