If you hold these securities to maturity, you will receive the greater of the inflation - adjusted principal or the amount of your original investment; this provides the benefit of keeping up with inflation while
protecting against deflation.
Thus, investors are
protected against deflation.
Since a TIPS investor won't receive less than the original principal, the investor's original principal amount is
protected against deflation as well.
Not exact matches
It
protects against all kinds of catastrophe, and guards
against inflation and
deflation.