You are on page 1of 1

Inflation-linked bonds (also known as linkers) are bonds that provide protection against inflation.

In such type of bonds their principals are linked to inflation, which serve to minimize inflation risk. This means their principal is increased by the change in inflation over a period.

Inflation-indexed bonds (also known as inflation-linked bonds or colloquially as linkers) are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment

You might also like