Fixed income

How it is used

The professional name for the bond side of the market: fixed income desks, fixed income funds, fixed income analysts. It is also used as an adjective: fixed-income securities. Some fixed income products, such as floating-rate notes, actually pay variable interest.

Example sentences

1. She moved from equity research to the fixed income team last year.

2. Higher interest rates have made fixed income more attractive to cautious investors.

Common collocations

• fixed income fund
• fixed income market
• fixed income securities
• fixed income desk

Related terms

• bondA loan that an investor gives to a government or company. The issuer usually pays regular interest and returns the original amount on a fixed date.
• government bondA bond issued by a national government to borrow money, paying interest and returning the principal at maturity. It is often seen as one of the safest investments in its own currency.
• corporate bondA bond issued by a company to raise money. It usually pays a higher yield than a government bond because the risk that the company cannot pay is higher.
• couponThe regular interest payment on a bond, or the interest rate the bond pays each year on its face value, fixed when the bond is issued.
• asset classA group of investments with similar features that tend to behave in similar ways, such as shares, bonds, cash, real estate or commodities.

More terms: Bonds & Fixed Income

• yield
• maturity
• credit rating
• default