http://stockcharts.com/h-sc/ui?s=tip&p=D&b=5&g=0&id=p67691397880Biggest volume day ever for TIP yesterday. I understand it has gone ex-div. Still the volume was very big, even with that taken into consideration. Possibly a rush by investors to get in, before the US guv defaults?? (only half kidding!!)
If government defaults, wouldn't it also default on TIPS?!? No payment is no payment, fixed or inflation-adjusted.
No. Bond holders will get payed before their salaries will.