Fixed Income Articles from FINANCIOLOGY.COM Free Article Directory

Search our Site:

Bond market
Fixed income
Corporate bond
Government bond
Municipal bond
Bond valuation
High-yield debt

For example, if you lend money to a borrower and the borrower has to pay interest once a month, you have been issued a fixed-income security. When a company does this, it is often called a bond or corporate bank debt (although "preferred stock" is also sometimes considered to be fixed income). Sometimes people misspeak when they talk about fixed income. Bonds actually have higher risk, while notes and bills have less risk because these are issued by government agencies.

The term fixed income is also applied to a person's income that does not vary with each period. This can include income derived from fixed-income investments such as bonds and preferred stocks or pensions that guarantee a fixed income. When pensioners or retirees are dependent on their pension as their dominant source of income, the term "fixed income" can also carry the implication that they have relatively limited discretionary income or have little financial freedom to make large expenditures.

Fixed-income securities can be contrasted with variable return securities such as stocks. To understand the difference between stocks and bonds, you have to understand a company's motivation. A company wants to raise money, and it doesn't want to wait until it has earned enough through ongoing operations (selling products or providing services). In order for a company to grow as a business, it often must raise money; to finance an acquisition, buy equipment or land or invest in new product development. Investors will only give money to the company if they believe that they will be given something in return commensurate with the risk profile of the company. The company can either pledge a part of itself, by giving equity in the company (stock), or the company can give a promise to pay regular interest and repay principal on the loan (bond or bank loan) or (preferred stock).

Fixed Income Subcategories Fixed Income Articles The Dow, Your Portfolio, and Aliens by Steve Selengut Oct 17, 2007 There are two extremely good reasons why your portfolio may not be "performing" (whatever that means) either as well as you would like or as well as your buddies say that they have been doing... since last May anyway. But let's define our terms be... Use Federal Stafford Loans to Pay for College by Elise Fisher Aug 02, 2007 Enrolling in college after graduation is a dream all high school students ought to have. A college education opens many new doors. Nevertheless, high school graduates often don?t have the money to even pay college tuition. Do not give up your dream b... Compelling Reasons to Rollover Your Company Plan Money to an IRA by John McCartin Jun 12, 2007 1) The best case for an IRA rollover is the ability to keep the money growing tax-deferred for your beneficiaries. Many company retirement plans do not allow this strectch option even though the IRA rules permit it. The cusiodian of your company p... THE RECENT PANIC ABOUT HIGHER INTEREST RATES: WHY ARE PEOPLE SO SCARED? by Monty Guild Jun 11, 2007 THERE IS A GOOD REASON TO BE SCARED Higher rates on the horizon mean many things. It is bearish for 1. Bonds 2. Income stocks 3. Companies that borrow a great deal to operate their businesses (profit margins will be negativ... Stock and Bond Trading as a Conservative Investment Strategy by Steve Selengut May 21, 2007 It's likely that either curiosity or skepticism led you to this article, and I would agree that, for most individual investors, trading is approached in a totally speculative manner. Stock trading, in its more popular forms (Day Trading, Swing Tradin... Soft Market + Motivated Seller + 6% Seller Contribution = 5.50% Fixed Rate 30 Year Mortgage Rate Buydown by Dale Rogers Nov 10, 2006 An anomaly is defined as a deviation from the normal order. At this very moment in many real estate markets in many parts of the country a soft market can lead to opportunities for many buyers. With many 30 year fixed rate loans with an 80%... Solving Social Security: Fire the Politicians! by Steve Selengut Aug 22, 2006 As an investor, I've always wondered why Social Security is such a problem. What's so difficult about managing this particular Trust Fund, and why is it so different from other investment accounts that pay out a constant stream of income? The private... Real Estate Investing: No Lawyers, No Debt, No Plungers by Steve Selengut Aug 08, 2006 Real Estate investing is not nearly as legally complicated, financially burdensome, or time consuming as you might think. In fact, it is easy to add raw land, shopping centers, apartment complexes, and private homes to your portfolio without Brokers,... Interest Rate Analysis - Focusing on Inflation by John Forman May 25, 2006 Although closely related to and integrated with economic growth, interest rates move independently from the economic cycle. They fluctuate freely via trade in the fixed income markets. As such they are both a component of the fundamental analysis o... Ten Common Investment Errors: Stocks, Bonds, & Management by Steve Selengut Apr 27, 2006 Investment mistakes happen for a multitude of reasons, including the fact that decisions are made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons. Losing money on an investment may no...