Other options include inflation protection and variable rates
. Treasury Inflation-Protected Securities (TIPS) are issued by the U.S. Treasury, and their principal depends upon the Consumer Price Index. Their principal increases with inflation and decreases with deflation. TIPS appeal to investors who fear that inflation could erode the value of their investment. When TIPS mature, the investor redeems either the original value of the security or the inflation-adjusted value, whichever is greater.5
Investors who can tolerate varying interest payments may decide to buy a variable-rate bond. The return on these bonds reflects the general level of inflation, and commonly rises with rising interest rates.6
Bond investing demands educated decision-making and thorough analysis. The global bond market is approximately $82.2 trillion while the global stock market is estimated at only $37 trillion. Clearly there are an abundance of bonds in varieties that investors can find appropriate for theirincome needs, tax situation, time horizon, and risk tolerance, just make sure to do your homework and a good tutor maybe helpful.