Fixed Income Assets

Motley Fool  Nov 22  Comment 
One way or another, you can set yourself up to receive a lot of income in retirement that keeps up with or even beats inflation.
The Hindu Business Line  Nov 19  Comment 
Singapore-based ZyFin Holdings Pte Ltd and London-based Sun Global Investments announced the listing of the first ever Indian fixed income ETF today, the companies said in a joint press state...
The Economic Times  Nov 18  Comment 
Sun Global Investments and ZyFin Holdings have announced plans to list the world's first Indian fixed income ETF in LSE.
Mondo Visione  Nov 16  Comment 
Celoxica, a leading provider of accelerated market data, order entry and pre-trade risk solutions for the electronic trading community, today announced the extension of its Celoxica Feed Handler and Gateway portfolio to further support Interest...
Wall Street Journal  Nov 8  Comment 
Deutsche Bank plans to promote Ram Nayak, the senior markets-structuring executive in the investment bank, to run its global fixed income business, according to people briefed on the planned appointment.
Finance Asia  Oct 30  Comment 
FinanceAsia's Best Fixed-Income Poll Awards took place on 28th of October in Singapore. Sponsored by Deutsche Bank and Standard Chartered, the exclusive awards dinner took place at Senso Ristorante on Club Street. Around forty senior executives...
The Economic Times  Oct 8  Comment 
Mutual funds’ financial manoeuvring, popularly known as "river crossing” in industry parlance, may be a thing of the past.


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.


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


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