Inflation-linked bonds - a primer

Dear Sir/Madam, Would you like some good TIPS, free of commission, designed to profit from inflation? Normally that is opening gambit in the sale of some sure-fire money-losing scheme or other. However, in this case, it is for government bonds. In this case the capitals are not hype but the acronym for Treasury inflation-protected securities in the US – index-linked gilts in the UK. In this month's column I shall explain the basics of this little known and widely mis-understood segment of the market, because it is likely to become increasingly important. It is an old truth in financia...