inflationsgebundene

Inflationsgebundene refers to financial instruments or contracts whose value or payments are linked to an inflation index. This linkage is designed to protect the purchasing power of the underlying asset or payment stream from the erosive effects of inflation. Common examples include inflation-linked bonds, also known as inflation-linked securities or Treasury Inflation-Protected Securities (TIPS) in the United States.

In an inflationsgebundene bond, both the principal amount and the interest payments are adjusted periodically based on changes in a specified inflation rate, such as the Consumer Price Index (CPI). For instance, if inflation rises, the principal value of the bond increases, and consequently, the interest payments, which are calculated as a percentage of the principal, also rise. Conversely, if inflation falls or deflation occurs, the principal and interest payments may decrease, though many inflation-linked bonds have provisions to protect against deflation by ensuring the principal does not fall below its original value at maturity.

These instruments are attractive to investors who are concerned about unexpected inflation eroding the real return on their investments. They can also be used by governments to manage their debt costs in an inflationary environment. The opposite of an inflationsgebundene instrument would be a fixed-rate instrument, where the nominal value and payments are fixed regardless of inflation. The primary benefit of inflationsgebundene assets is the preservation of real value, offering a hedge against rising prices.