What Is Fixed Income?

Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until its maturity date. At maturity, investors are repaid the principal amount they had invested. Government and corporate bonds are the most common types of fixed-income products.

Unlike equities that may pay no cash flows to investors, or variable-income securities, where can payments change based on some underlying measure—such as short-term interest rates—the payments of a fixed-income security are known in advance.

Leave a Comment

Your email address will not be published.

Scroll to Top