Fixed Income Assets

RECENT NEWS
SeekingAlpha  Apr 28  Comment 
Mondo Visione  Apr 23  Comment 
Today the Ontario Securities Commission (OSC) published The Canadian Fixed Income Market Report and OSC Staff Notice 21-708 - OSC Staff Report on the Canadian Fixed Income Market and Next Steps to Enhance Regulation and Transparency of Fixed...
Mondo Visione  Apr 23  Comment 
smartTrade Technologies announces today that smart-FI™, its end-to-end trading solution designed for Fixed Income and OTC derivatives businesses, was awarded the best sell-side OTC Trading Initiative at the Sell-Side Technology Awards held by...
Mondo Visione  Apr 17  Comment 
Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today launched AskTRPS, an enhancement to Thomson Reuters Pricing Service (TRPS).  This independent price challenge tool provides fixed...
New York Times  Apr 14  Comment 
JPMorgan Chase & Co, the biggest U.S. bank by assets, reported a better-than-expected rise in quarterly profit on Tuesday as revenue from fixed-income trading rebounded.
Mondo Visione  Apr 14  Comment 
Bondcube, the Fixed Income trading platform, is pleased to announce that it has gone live in Europe & the US with full match, negotiation and trading functionality for all to all bond trading.   Bondcube takes indications of interest (IOIs)...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Fixed Income assets refer to assets that provide their owners with a fixed stream of income. Bonds are the most common example of a fixed income asset. Companies and government entities will issue bonds or IOUs to investors. These bonds typically pay a fixed rate of interest or coupon rate to investors for a fixed period of time, thus the name fixed income. At the end of the period, the investor receives his principal (the orginal amount of money paid for the bond).

Ratings and Risk

Fixed income assets typically receive ratings from major ratings agencies. These ratings signify the amount of risk represented by the assets. For instance a U.S. treasury bond which is considered to be one of the safest investments, carries a AAA rating, some states likewise carry high ratings. The higher the rating of the bond issuer, the lower the rate of interest required by the purchasers. A smaller, less established company, for instance, might only have a rating of BBB, and would have to pay bond investors significantly higher annual interest rates. Bonds with exceptionally low ratings are known as junk bonds and typically pay the highest interest rates--sometimes in the double digits.

Equities vs. Bonds

Equities and bonds are the two major asset classes available to investors. While there are others (real estate, private equity, and venture capital) these two classes are very common and extremely liquid (can be converted to cash easily). Equities are typically considered to be the riskier of the two asset types (with the exception junk bonds and other lowly rate bonds) and have traditionally generated higher returns than fixed income assets.

Returns

Fixed income assets historically have had a much lower rate of return than stocks (equities). This is because with


Example

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki