fixed income investments

Fixed income investments are based on a specific type of guaranteed return for a certain type of investment. At its simplest, fixed income investments are those that provide the investor with a regular payment. This may be twice a year. Fixed income investments include money market instruments, bonds, certificates of deposit, preferred stock and preferred shares. Bonds comprise a large segment of fixed income investments. These may be bonds of local companies, municipal corporations or governmental agencies. It is even possible to purchase bonds called Emerging Market Income. This refers to bonds from countries with an emerging market. If the fixed income investments are bonds, they are generally traded OTC or over-the-counter. Some may be sold on the stock exchange and fewer make it onto the NASDAQ. The people who make fixed income investments are a varied group. They include financial institutions, individuals, insurance companies, international investors, mutual funds and pension funds. All do face a risk. If the interest change alters or the credit quality changes, there is a risk. Fixed income investments are also faced with the problems resulting from inflation. If the inflation rate increases, the rate of return decreases.

Fast Facts

The issuance of Corporate bonds in the United States for 2008 was $702.4 billion.
In 2008, United States high yield bonds had returns of 24.3% compared to 4.9% of Treasury bonds.

fixed income investments - Financial Planners, Articles and Q&A

Search Results for "fixed income investments"

Articles

Results 1-5 of 11 for "fixed income investments"

Fixed Income Investing: A Stable Source of Income

Fixed income investments refer to any investment that has a fixed and stable return. This contrasts with equi...
- Site: financialplannernetwork.com
- 2 of 3 user(s) found this useful
Stock Investments

What is a stock investment? Simply defined, a share of stock represents a share of ownership in a publicly-tr...
- Site: financialplannernetwork.com
Mutual Fund Overview

This article is an overview of Mutual Funds, what they are, what they invest in, types of Mutual Funds and thi...
- Site: financialplannernetwork.com
What Is a Bond?

A bond is a debt instrument--basically an IOU--where an investor is loaning money to the US government, a stat...
- Site: financialplannernetwork.com
Best Money Market Funds

A money market fund is a mutual fund style of investing. Operators of money market funds invest in short-term...
- Site: financialplannernetwork.com
- 1 of 1 user(s) found this useful