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Risk-Free Rate

The interest rate that would exist on a riskless investment/ security, given that expected inflation is zero. Such a rate...

Inflation-Linked Swap

An inflation-linked derivative where the inflation rate is either paid on an annual basis or with a single amount at...

Inflation Indexed Swap

An inflation-indexed derivative where the inflation rate is either paid on an annual basis or with a single amount at...

ZC Indexed Bond

An index linked bond that pays no coupon (hence, the zero coupon, ZC), whilst repayment of its principal is linked...

Zero-Coupon Indexed Bond

An index linked bond that pays no coupon (hence, the zero coupon), whilst repayment of its principal is linked to...

Real Rate of Return

The growth rate of an investor's purchasing power. It the interest rate that takes into account the effect of inflation....

Real Rate Swap

A CPI-linked swap where counterparties exchange a floating nominal rate like LIBOR on an annual basis against an inflation-indexed bond...

ZCS

It stands for zero-coupon swap; an inflation-indexed swap whereby a single fixed payment is due at the unique (final) payment date...

Zero-Coupon Swap

An inflation-indexed swap whereby a single fixed payment is due at the unique (final) payment date for the fixed rate leg in...

Breakeven Swap

An inflation-indexed swap which has both cash flow legs paying out on maturity. This swap is based on an exchange of the...