Fixed income asset class

Fixed Income

https://www.investopedia.com/terms/f/fixedincome.asp

1. Fixed income is an investment that pays a fixed income.
2. Basically, you lend money to an entity and, in return, they pay you a fixed amount until the maturity date, which is the date when the money you initially invested (the loan) is paid back to you.
3. Government and corporate bonds are the most common types of fixed-income products.
4. The government or company will pay you interest for the life of the loan, with rates varying depending on inflation and the perceived risk that they won’t make good on the loan.
5. The risk of certain governments defaulting on their bonds is very unlikely, so they pay out less.
6. Conversely, some companies risk going bust and need to pay investors more to convince them to part with their money.

Tags

1. Bonds