IEF Capital Index Bond
The IEF Capital Index Bond is the most common inflation instrument in Europe. The Bond’s principal increases annually by the rate of inflation, as measured using the consumer price index (CPI) for all households published by the Statistics Netherlands (CBS). The fixed rate interest on the increasing principal amount is paid out to the investor each year, whilst the full cumulatively indexed principal is paid at maturity. Typical durations for these products are between eight and twelve years.
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