By Adam Hoffman, CFA : Recently, Treasury Inflation Protected Securities, commonly referred to as TIPS, have been in the headlines as a recommendation by several large asset managers. The fixed income market provides a real-time estimate of expected future inflation via the difference in yield between plain-vanilla Treasuries and TIPS. In this paper, we will explore how TIPS work, the current inflation environment, and how to evaluate the decision to purchase a TIPS versus a regular Treasury bond.