RRM Comparison Table

	RRM Comparison Tables
	Corporate Inflation-Linked Notes	Treasury Inflation-Protected Securities (TIPS)	RRM  Inflation-Indexed Financing (Start in REAL)
What it is	A bond that pays a monthly coupon consisting of two parts: a fixed base rate plus an inflation adjustment calculated monthly based on the year-to-year change in the consumer-price index urban reading.	A Treasury bond that pays a semiannual fixed coupon. That coupon is applied to a principal amount that fluctuates with changes in the CPI.	A    structure     the pays the principal and interest at an inflation adjust rate.  The amount changes with the changes in the index or inflation rate.
Corporate notes pay out monthly income that moves in line with the consumer- price index.	Appreciation is paid out at maturity, but is subject to the taxation of an Original Issue Discount (OID) during life of bond.	The loan can be structured in many forms, from fully amortizing to "bullet".
Price	Purchased at par, $1,000 each.	Purchased in $1,000 denominations adjusted to reflect auction results.	Priced at a "Fixed real rate of return" and could be a discount, par or premium pricing.
Value at maturity	Pays back the $1000. not adjusted for inflation, creating a "variable real return".	Pays out the appreciated value of the principal.	All cash flow received is adjusted for inflation, "constant, real purchasing power"
Tax Status	Interest is generally taxable.	Interest is taxable at the federal level (both realized and unrealized). Exempt from state and local taxes.	Can be in taxable or tax-exempt structure
Federal	Interest	Taxable.	Can be in taxable or tax-exempt structure
State	Interest is taxable.	Not taxable by states.	Can be in taxable or tax-exempt structure
"Phantom Taxes"	Interest is taxable at the federal level (both realized and unrealized). Exempt from state and local taxes.	Inflation adjustments to principal are taxed each year, even though income isn't received until bond is sold or matures.  This is the Original Issue Discount (OID).	In the amortizing structure, the payment made or received is comprised of principal and interest adjusted for inflation.  While no OID tax is present, the increasing value of the principal may generate a capital gain for the lender/investor and be a tax decuctions for the issuer.
Comments	Corporate notes carry credit risk of company issuing them.  InterNotes.com and DirectNotes.com provided links to many issuing companies. Other issuers sold them directly.	TIPS, as U.S. government securities, have no credit risk.	RRM issues are fully inflation adjusted. They are true Real Return structure  due to 1) they pay a real return, 2) they have a fixed real interest payment, 3) they have a fixed payment on the principal.
Table 2
Applicability:	Corporate Inflation-Linked Notes	Treasury Inflation-Protected Securities (TIPS)	RRM Fully-Inflation-Indexed Financing
Corporate Bonds	Yes, the structure was commonly called" CIPS".  There is also a Medium Term note Structure and a program for "Certificates of Deposit" (CD-IPS)	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income, and increase the value of the firm.
Commercial Mortgages	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Home Mortgages	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Leveraged Leases	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Sale/Leaseback	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
MUNIs	YES,  the structure was commonly called" MIPS"  This creates a variable cost, and increases risk to the issuers.  To offset this risk the issuer must enter into a swap of some kind.  There-by increasing costs and potential volatility and risk if market conditions change.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Housing Authorities	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Airport, Port Authorities	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Toll roads, Railroads	Not at this time.	No.  This structure will weaken the balance sheet of the issuer.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.
Sovereign nations.	Not at this time.	Yes, because the nations have the ability to "print" the money needed to repay the debt.	Yes, and will increase the free cash flow, improve the income statement, strengthen the balance sheet, matches constant real payments to expected real income.