Fixed income - Financial definition
Concise definition of the term fixed income
Fixed income refers to investment securities that provide a fixed stream of income, such as bonds and certificates of deposit, offering investors a predictable return over a specified period of time.
Comprehensive definition of the term fixed income
Fixed income encompasses a broad range of investment vehicles, including government bonds, corporate bonds, municipal bonds, and mortgage-backed securities, where investors receive periodic interest payments and the return of principal at maturity. These securities are valued based on factors such as interest rates, credit quality, and maturity, making them attractive for investors seeking stable income streams and capital preservation. Fixed income investments play a crucial role in diversified portfolios, balancing risk and return, and are often utilized by retirees, pension funds, and institutional investors to meet income requirements and manage overall portfolio risk.