Treasury Inflation Protection Securities (TIPS)
Performance and Risk Trends 1997-2004

Lou Gehring

Treasury Inflation Protection Securities (TIPS) have proven popular with diverse groups of market participants since their issuance in 1997. The traditional market base for TIPS has been investors who were seeking an effective hedge against inflation. Pension funds, insurance companies, endowments, and foundations have typically been included in this category. More recently, however, TIPS demand has also come from relative value investors who have used these securities in place of traditional nominal rate bonds.