What is an Index Bond?

Index bonds are corporate bonds that guarantee that creditors will not suffer losses due to rising prices by linking interest rates to inflation rates.

Index bond

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Index bonds are corporate bonds that guarantee that creditors will not suffer losses due to rising prices by linking interest rates to inflation rates.
Chinese name
Index bond
By
Interest rates are linked to inflation
Also known as
Commodity-related bonds
Use to
Index of interest is not linked to inflation
The linking method is usually: bond interest rate = fixed interest rate + inflation rate + fixed interest rate * inflation rate. Sometimes the index used to calculate interest is not linked to inflation and is linked to a specific commodity price (oil price, gold price). This type of bond is also called a commodity-related bond.

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