Factors That Affect the Price of Fixed-Income Securities
Fixed-rate capital securities have certain risks in common with other fixed-income securities. These risks affect the market price of the securities, which in turn affects their yield.
Fixed-Income Securities: Another term for bonds, which pay a fixed rate of interest until they mature.
Fixed-income Securities
Investment vehicles that offer a fixed periodic return.
Fixed Rate Bonds ...
Fixed-income securities
Investments that have specific interest rates, such as bonds.
Fixed premium
Payments of a fixed, equal amounts paid to an insurance company for insurance or an annuity.
Fixed-income securities that are issued by U.S. government-
sponsored entities (GSEs) that were started to reduce borrowing costs for students, farmers, and homeowners.
Fixed-income securities that represent an undivided interest in a pool of federally insured mortgages put together by the Government National Mortgage Association (Ginnie Mae).
Pass-Through Security ...
They are fixed-income securities, or IOUs, that are backed by cash-generating assets as collateral.
Balanced fund Mutual fund that invests in stocks, fixed-income securities and money market instruments to reduce risk and make a moderate long-term profit.
Yield is the interest on fixed-income securities which includes such investments as futures contracts and government bonds.
Referred to as "fixed" income because the payment stream (the yield) remains constant until maturity.
Interest on most bonds and fixed-income securities is paid twice a year. On corporate and municipal bonds, interest is calculated on 30-day months and a 360-day year. For government bonds, interest is calculated on actual days and a 365-day year.
Therefore, high-quality fixed-income securities and blue chip stocks are generally the norm. Also, debt-to-total capitalization ratios are generally a moderate 35% or below, in most instances.
A Managed Account is when you invest in a Managed Account, when doing this you will purchase a portfolio of equity, fixed-income securities, or mutual funds. You will gain access to the expertise of a professional investment manager.
Cash encompasses both actual cash and cash equivalents (fixed-income securities with a maturity of one year or less).
The seller of put options on fixed-income securities believes interest rates will stay at present levels or decline. In selling the put option, the writer, of course, receives income.
As is the case with many fixed-income securities, federal income taxes are due on the interest payments in the year they are received. Interest payments on TIPS are exempt from state and local income taxes.
The proportion of a fund's assets held in cash or short-term, fixed-income securities. Too much cash in an equity fund's portfolio can be a drag on performance.
Basis Point: A basis point is a unit of measurement used to assign value to fixed-income securities. One basis point is equal to 1/100 of 1 percent of yield (the rate of return on a capital investment).
This includes stocks, futures and commodities, fixed-income securities, forex, etc. In this tutorial, we'll usually analyze stocks in our examples, but keep in mind that these concepts can be applied to any type of security.
While individual investors used to be limited to investments in stocks, mutual funds, and a limited number of fixed-income securities like Treasury bonds and bank certificates of deposit, ...
This method of trading allows dealers and agents to trade government issued fixed-income securities on a term and rate basis, rather than waiting for settlement on a trade by trade basis.
Income fund: Mutual fund that invests primarily in fixed-income securities such as bonds, mortgages and preferred shares. Their primary objective is to produce income for investors, while preserving capital.
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Intermediate-term bonds Fixed-income securities with maturities generally ranging from three to ten years.
International bond A bond of any country.
Basis Point - Typically used regarding fixed-income securities (bonds), a basis point represents one-hundredth of a percent. For example, 100 basis points equals 1%.
Ladder
A portfolio strategy where an investor creates a portfolio consisting of various fixed-income securities that are approximately the same value, but each with different lengths until maturity. This helps reduce interest rate risk.
Interest rate options written on fixed-income securities, as opposed to those written on interest rate futures contracts.
Out-of-the-Money ...
These strategies can be used to invest or trade in any security such as stocks, futures and commodities, fixed-income securities, forex, options, and many others.
In fixed-income securities, the difference between the yields on securities of the same quality but different maturity or the difference between the yields on securities of the same maturity but of different quality.
The Bolsa De Madrid trades convertible bonds, fixed-income securities, government bonds, and stocks. The Bolsa De Madrid handles 90% of its bids using a Spanish Stock Market electronic interconnection system, which is known as a SIBE.
Basis Point: 1) .01% of yield in a fixed-income security. If the T-Bond yield drops from 7.05% to 6.40%, it's declined 65 basis points; 2) Used in referring to changes in price in other than fixed-income securities.
Interest Rate Risk: The potential for gains or losses resulting from fluctuations in the market price of fixed-income securities (debt or preferred shares). Such price fluctuations are a consequence of changes in prevailing interest rate levels.
This can be achieved by moving assets among stocks, cash and fixed-income securities or, with the advent of stock index futures contracts, ...
international agencies, the ratings issued by Standard & Poor's range from AAA (top rating) to D (debtor in default); Moody's ratings range from Aaa to C. Ratings help investors evaluate the credit risk inherent in fixed-income securities.
Options on physicals Interest rate options written on fixed-income securities, as opposed to those written on interest rate futures contracts. Option writer Option seller.
 See also: Income, Securities, Investment, Market, Bonds
  
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