Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [fixed-income]

A fixed income security is an investment that provides fixed periodic payments.

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Why don't bond makers just get loans?

I was just looking at investment opportunities, and I found a number of places offering bonds paying up to 12% interest over two years. My first thought was, I can get a loan from my bank for 5% interest - so if I get a loan to use to buy the bond,…
Benubird
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What stops you from using fixed income in developing countries?

I was recently visiting a developing country and noticed that their interest rates are very high — ~15% with government bonds promising ~13% annually. I was just thinking, if the bid ask spread for that currency with the USD is B/A respectively,…
AspiringMat
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Why would I buy a bond with a negative yield?

The only reason that I can think of is because I expect the bond to appreciate in price thus offsetting the loss in yield. I could still end up with less money than I started with, if I hold the bond until maturity. Ultimately, the only scenario…
Ellie K
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What are some examples of "fixed income" investments?

I'm using an online tool that my broker provides for balancing my portfolio according to my investor profile and it breaks down the suggested allocation into the following categories: Large Cap Equity Small Cap Equity International Fixed Income…
JohnFx
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I'm not broke, but I'm feeling stuck on a fixed income

I'm living on a fixed disability income, with little hope of ever being able to work again. I cannot receive any income of any kind while on disability (or I have to pay it back anyway, and risk losing my benefit altogether). Assets: House: $80k…
type_outcast
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Do bonds become more valuable right before a coupon payment?

I'm learning about fixed income for the first time and my understanding is that the value of a bond depends on three major variables: The face value The time to maturity The coupon rate a.k.a. the interest rate paid semi-annually or…
Paul Razvan Berg
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Are long-term bonds risky assets?

I think bonds are debt/loan and fixed-income, so they are risk-free, both short term and long term. But it seems like Bodie's Investment thinks long-term bonds are risky: For example, assume that the total market value of an initial portfolio is…
Tim
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What are the contents of fixed annuities?

This is a personal finance question as annuities are only as good as the company that insures them. Annuities from reputable companies often yield 7% or more on paper before any fees, taxes or distributions etc. The question is: how are annuities…
CQM
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Does buying bonds individually offer an advantage over bond funds/ETFs in a low interest rate environment because bonds can be held to maturity?

I have heard this argument several times. Today's low-interest rate environment makes it risky to own bond funds/ETF. Investors will be seriously injured when interest rates start rising because funds/etfs have no maturity date. It’s much…
curious
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What does DIST refer to in this equity ETF?

I am looking at this bond ETF "iShares MSCI Japan UCITS ETF USD (Dist)" which is listed on the London stock exchange. What does DIST refer to in this equity ETF? I cannot find the answer from the…
curious
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Why aren't companies calling their 7%+ notes if interest rates are so low?

Here's an example of a corporate fixed income issue: GOM. General Motors Acceptance is paying 7.375%. It's callable at $25, which is right around where it's trading. (That's par.) Since interest rates are at historic lows, couldn't they find cheaper…
cjp
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What are short-term fairly liquid investments with attractive yields?

I am looking for fixed-income investments or investment strategy that offer quarterly liquidity and attractive annual effective yields and low risk (i.e. holding the security for a a quarter should generate a positive return) and some spread above…
Ram Ahluwalia
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Is there a catch in investing in treasuries close to maturity date?

Is there a catch to invest to treasuries close to maturity date? I don't want to lock the money for a long time, b/c the interest rate probably will go up. But I am concern that it's not that simple. Anything to look for? Thank you so much for your…
GemStone
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When are short-term US Treasury funds (ETF or mutual) a good investment?

I want to understand the rationale behind buying into a short-term Treasury ETF (or mutual fund). In particular, I want to understand how it compares to buying short-term Treasury bonds/bills directly or placing the money in a savings account. For…
Betterthan Kwora
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Cash out mutual funds or stay invested? Risk aversion choice

I am from India. Stating this upfront to focus on Indian context , while the question is generic in nature and would like to get a wider response By way of background I am in late fifties , retired with no loans or obligations - all basic…
anon
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