When you say, "Unlike TIPS ... I Bonds are protected against capital losses," I think you're wrong about TIPS.
For example, "But here’s an additional advantage of TIPS: They also offer owners protection against deflation. TIPS come with a “deflation floor” that protects the holder’s principal value if the depression scare turns into a deflationary episode. In other words, if the Consumer Price Index is falling the floor guarantees the TIPS owner either the inflation-adjusted principal or the par value at maturity–whichever is greater. TIPS do not lose their value during deflation." https://www.marketplace.org/2008/12/01/tips-and-deflation/
Comments:
When you say, "Unlike TIPS ... I Bonds are protected against capital losses," I think you're wrong about TIPS. For example, "But here’s an additional advantage of TIPS: They also offer owners protection against deflation. TIPS come with a “deflation floor” that protects the holder’s principal value if the depression scare turns into a deflationary episode. In other words, if the Consumer Price Index is falling the floor guarantees the TIPS owner either the inflation-adjusted principal or the par value at maturity–whichever is greater. TIPS do not lose their value during deflation." https://www.marketplace.org/2008/12/01/tips-and-deflation/
Post: Price Protection
Link to comment from October 9, 2021