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Inflation-linked bonds offer protection while nominal gilts risk purchasing power
Fixed-rate bonds guarantee your payments but ignore the fact that your money might buy half as much in twenty years. Index-linked gilts flip the script by fixing your purchasing power while letting the cash amounts fluctuate with inflation. Understanding the hidden mechanics like the index ratio and the 'dirty price' is the only way to avoid a major shock when your trade finally executes.
7 hours ago