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Not sure how it works in the US, but in my country the inflation-indexed bonds are still subject to the capital gains tax, so they offer a true hedge only up to
by arubania2 4y ago
Not sure how it works in the US, but in my country the inflation-indexed bonds are still subject to the capital gains tax, so they offer a true hedge only up to a certain level.
Obviously still better than regular bonds in this regard.
- rottencupcakes 4y agoWorse, subject to income tax.
- bombcar 4y agoFederal bonds are subject to federal income tax - but exempt from state. This can be useful to some. Munis are usually exempt from both but pay lower rates accordingly.