New traders are baffled by Treasury Inflation-Protected Securities. Can’t blame them.
By David Enna, Tipswatch.com
A 12 months in the past, whereas actual yields for Treasury Inflation-Protected Securities had been nonetheless deeply under zero, I labored with a Wall Avenue Journal reporter on an in depth story about investing in TIPS. Issues acquired troublesome after we acquired to the topic of “real yield to maturity.”
Monetary reporter: “This doesn’t make sense. What’s my precise return? If…