fixed-income security investment & finance definition
A security, such as a bond or preferred stock, that pays a constant income each period. Price changes in a fixed-income security are caused primarily by changes in long-term interest rates.
Fixed-Income Security
An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity.
Fixed-income security
A security that pays a fixed rate of return. This usually refers to government, corporate or municipal bonds, which pay a fixed rate of interest until the bonds mature, and to preferred stock, paying a fixed dividend.
Fixed-income security A security, such as a bond or money market instrument, that pays a specific interest rate.
Float Often refers to the number of shares of a security that are outstanding and available for public trading.
A straight forward fixed-income security specifically designed to permit individual investors to participate in original offerings of large U.S. corporations and are offered through the broker-dealer community.
Direct Purchase Plan ...
Ginnie Mae pass-through A fixed-income security that represents an undivided interest in a pool of federally... Ginnie Mae trust A closed-end unit investment trust, investing in Ginnie Mae pass-throughs.
Accrued interest is the interest that accumulates on a fixed-income security between one interest payment and the next.
To illustrate, consider that most investors buy convertibles because the coupon or dividend provides a steady income stream, like any fixed-income security, ...
The use of a dated date is very common with any type of fixed-income security.
Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security.
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. Eg, if Yen futures drop from 98.10 to 95.
Interest rate risk affects fixed-income security prices, mainly when interest rates rise. Since prices of all market-traded bonds move counter to the direction of rates, rising rates cause bond prices to decline.
Duration: The measure of the price sensitivity of a fixed-income security to an interest rate change of 100 basis points. Calculation is based on the weighted average of the present values for all cash flows.
The rate of return an investor receives if a fixed-income security is held to maturity.
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A method of quoting the price of a fixed-income security as a yield percentage, rather than in dollars. This allows bonds with varying characteristics to be easily compared.
Convexity - Measure of the curvature of the price-yield relationship of a fixed-income security. Any fixed-income security with known cash flows has positive convexity.
Maturity - The date on which a fixed-income security comes due and the issuer is obligated to repay the principal or face value of the security.
Merger - When two (or more) companies combine into one.
Unlike an equity price, which just moves one-dimensionally, the price of a fixed-income security is calculated from sum of discounted cash flows, where the discount rate used depends on the interest rate at that maturity.
Redemption Date
The date on which a fixed-income security is due to be repaid by the issuer at face value.
Federal agency bond
Fixed-income security issued by a government agency such as FNMA.
It is the direct relationship to a stock issue of a fixed-income security not rated by an agency, any agency, such as the institution of Standard & Poor rating system for issued trading stocks.
Yield to Maturity: The rate of return an investor receives if a fixed-income security is held to maturity.
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A convertible security whose optioned common stock is trading in a middle range, causing the convertible security to trade with the characteristics of both a fixed-income security and a common stock instrument.
Immunization strategy ...
Applying mainly to convertible securities, interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security.
Related Terms: ...
Bonds include every fixed-income security with a maturity exceeding one year, from government notes to high-yield corporate bonds. Other includes preferred stocks as well as convertible bonds and convertible preferreds.
form of fixed periodic payments and the eventual return of principal at maturity. Unlike a variable-income security, where payments change based on some underlying measure such as short-term interest rates, the payments of a fixed-income security are ...
Preferred stock owners receive pre-defined payments, while common stock owners depend on the decision of the board of directors. As a consequence, preferred stock owners can use their shares as a fixed-income security.
of a common stock, it is on the board of director's discretion whether to pay out a dividend or not. Thus preferred stock usually is not fluctuating in nature as much as a company's common stock. This is often referred to as a fixed-income security.
 See also: Income, Security, Investment, Market, Interest
  
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