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About The Author: Murray Coleman
Written by IndexUniverse Staff   

Murray Coleman 		Murray Coleman is the managing editor of IndexUniverse.com and the director of research for Index Publications LLC, the publisher of the Journal of Indexes. Prior to joining Index Publications, Mr. Coleman was a mutual funds reporter for Dow Jones’ Marketwatch.com, and earlier, for Investor’s Business Daily. His experience reporting on the financial industry stretches back more than two decades.
 

Latest comments on this feature

2 Latest comments on this feature.

"The difference between the two, 2.33%, is referred to as the TIPS' breakeven spread. It reflects what the market expects inflation to be over the next 10 years."

Murray the last sentence is incorrect. The spread does not reflect only the expected inflation. It reflects two things. The other is the risk premium for unexpected inflation.

Nominal bonds have three components, not two. The first is the real rate, the second is the expected inflation rate, and the third is the risk premium investors require for taking the risk of unexpected inflation. TIPS only have the first. Thus the difference between TIPS yields and nominal bond yields is the sum of the other two, not just the expected inflation rate.

Posted by Larry Swedroe, on Sunday, 17 August 2008

I found you article on the Lehman ETNs very worthwhile. Now that the unthinkable has happened, I would love to see an update article.

Posted by Dave Umstead, on Friday, 19 September 2008

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