FORECAST: Savings for Fixed Income Interest Expense per year in the United States. Starts at +40 Billion per year. +$200 Billion by the 7th year. *
- tbgidley
- May 18
- 2 min read
Make ONE simple change. Structure issuance with Constant Purchasing Power.
Our Product. Technology and Intellectual Property. Real Return Methodologies (RRM) provides that.
What does our methodology do? It inverts and simplifies the calculations for the creation, pricing and trading of debt instruments. Why do that? Today in the debt markets, we can know the PRICE of anything, but we do not know what its PURCHASING POWER will be in the future.
What if we could, with certainty, know the future purchasing power? And, have the pay/receive be the quantity that always has stable purchasing power value.
For all market participants and stakeholders, one of the challenges is passing forward CONSTANT PURCHASING POWER (with ever increasing CPP a goal) for current and future beneficiaries.
Our method allows us to know with certainty what the VALUE (purchasing power) of this asset class will be any time in the future. A forecaster’s dream.
How it works. First…no financial engineering. One cannot turn a NOMINAL instrument into a REAL (inflation adjusted) instrument. Collecting Nominal via deposits or taxation and investing in Nominal; then promising a fixed/known/stable Real Return has a multitude of fiscal, monetary, ALM, business and inflation management ‘bear traps.’ Yes, you could employ hedges, swaps and derivatives to ATTEMPT to lock in a KNOWN REAL result. But with the future costs, variabilities and volatilities, the final outcome is highly questionable.
We asked, ‘why add the risk of unknown inflation to risk management?” The FISHER EQUATION shows that the Real Return Rate is variable. So, we invert the equation. We START with the Real Return Rate agreed upon by the investor and the lender. We use the current market services, meeting all rules, regulations and accounting standards.
Today, when the principal is returned, its purchasing power is in doubt. If historical patterns continue, the return of the principal will always deliver lower purchasing power. With our method, the purchasing power of the principal with always be paid out.
More information is available on our website. There is a downloadable dynamic spreadsheet, with no hidden cells, enabling the testing of historical data and personalized future forecasting of your own target matric. ‘Insights’ has articles. ‘Portfolio’ describes the IP and Technology.
Future action: ask for debt instruments to be shown to you in RRM; start issuing and investing in products with the sound foundation of Constant Purchasing Power, including pensions, annuities, mortgages, ESG, SDG, Micro-lending, leases, etc. Capture the benefits delivered by RRM to your financials, credit scoring, asset stabilization, innovation and business risk management.
*Data sources.
1. FRED (St. Louis Fed) Inflation Risk Premium via the Cleveland Fed. May 2025 data, 0.43759%, not Seasonally Adjusted, Monthly
2. Sifma.org Fixed Income Securities Statistics. Outstanding (excluding MBS and ABS, as of 4Q24,
$46.9 Trillion
3. SPDR Bloomberg US Aggregate Bond UCITS ETF (Dist)
Average Maturity 8.25 years
Effective Duration 6.05 years
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