Inflation Linked Bonds Explained

[@mikyl-fo8rh]

The problem is that the government is not truthful about the rate of inflation.

[@jaxsesstein7767]

why do people still buy non inflation linked bonds? is it because they at first issue provide a higher yield than the inflation linked bonds, allowing for a risk element and current competition in the bond market?

[@Perfectionalistcom]

Thanks for uploading. Keep it up

[@liwacap]

Thanks for watching!

[@jamesstmanhattan]

Could you please explain why the yield on on t-bonds change all the time? Isn't it supposed to be that I pay for a fixed yield and it stays the same until the date of maturity?

[@liwacap]

A bond has fixed cash flow that is paid every six months or per annum until final maturity, and yes, if you hold the bond to maturity you will earn that return. This return was available when you invested, but that does not necessarily need to be the same after you transacted as it depends on price, which depends on supply and demand, just like anything else . So, if you decided to buy more of this bond, the yield might be different due to price change.

[@jamesstmanhattan]

@@liwacap Thank you for the clarification! Please do more interviews with Bob Prince and Ray Dalio.

[@liwacap]

@@jamesstmanhattan Absolutely! Make sure to subscribe to our channel and follow us on Instagram & LinkedIn to stay up to date with our latest interviews.

[@jamesstmanhattan]

@@liwacap I subscribed the moment I saw the interview with Bob Prince, I really enjoy listening to his takes on the markets. He's got a unique perspective having been investing with Ray Dalio for so many years.