RRB

The protection against inflation is double: on the one hand, the interest paid is calculated on the principal adjusted according to inflation, and on the other hand, the principal repaid at maturity is also indexed to inflation. However, unlike U.S. Treasury Inflation Indexed Securities, Canadian real return bonds do not guarantee repayment of the initial nominal amount at maturity: in the event of deflation, the principal repaid could be lower than this amount.