Fixed Income Key Terms

Fixed income glossary this fixed income glossary covers the most important bond terms and definitions required for financial analysts.

Fixed income key terms. As there are some good things to know we shall break it down into a few posts. Fixed rate coupon bond prices typically fluctuate more with the market. Fixed income refers to assets and securities that bear fixed cash flows for investors such as fixed rate interest or dividends. For example a company might issue a 5 bond with a 1 000 face or.

First i want to quickly review a few key terms that relate to fixed income. Welcome to cfi s guide to the most important fixed income terms. For example the borrower may have to pay interest at a fixed rate once a year and repay the principal amount on maturity. For example a treasury auction bond purchased directly from the u s.

What are the most important fixed income terms. These terms are covered in detail in cfi s fixed income fundamentals course annuity annuity an annuity is a financial product that provides certain cash flows at equal time intervals. For a complete understanding of bonds and fixed income securities check out our fixed income fundamentals course annuity. Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule.

Fixed rate coupon bonds are the most common type of fixed income securities because they provide the most stability a key consideration for any fixed income investor. Unsecured short term fixed income instrument that is issued either by a corporation city state or country that has a high probability of defaulting on their promissory notes. Fixed income key terms august 16 2017 we will start our review of fixed income securities today. Msci fixed income index glossary of terms aims to provide a general outline of the terminology used in msci fixed income index methodologies.

Key fixed income terms if you read about fixed income investments in fund factsheets scheme information documents fund manager interviews blogs etc you will come across some technical terms which you may not understand. Please refer to msci fixed income index calculation methodology for precise details on index calculation and.