Inflation-Indexed Securities

1. Securities designed to protect investors and the future value of their fixed-income investments from the adverse effects of inflation. Using the Consumer Price Index as a guide, the value of the securities? principal is adjusted to reflect the effects of inflation. Also known as Treasury Inflation Protected Securities (TIPS) or Treasury Inflation-Indexed Securities (TIIS).

2. Notes periodically issued by the GSEs whose return is adjusted with changes in the PPI or CPI.