Asset Classes

Fixed Income

Acronym
Bonds

Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until their maturity date. Fixed income investments, or bonds as they are commonly known, typically provide a premium above inflation and experience less return volatility compared with shares. These investments are designed to generate a specific level of interest income, while also providing diversification, capital preservation, and potential tax exemptions. While stocks get headlines, fixed income is a more low-key source of cash flow and capital preservation. Often, when stocks are declining in value, fixed income is gaining in value, making them an important hedge. Other common asset classes include equities (e.g., stocks), cash and equivalents, real estate, commodities, and currencies.

Asset Classes

Corporate Bond
General Obligation Bond
High Yield Bond
Junk Bond
Municipal Bond
Private Credit
Treasury Bond

Entities

ALEX.fyi
Abacus Wealth Partners
Alpine Macro
Amherst Pierpont Securities LLC
Arbor Research & Trading, LLC
Avalon Investment & Advisory
BTIG
Baillie Gifford
Ballentine Partners
Baltimore Sun
Barnegat Fund Management
BlackRock
Bond Angle, LLC
Brandes Investment Partners
Buckingham Strategic Wealth
COEX Partners
CSULB Beach Investment Group
Charles Schwab & Co.
Chopper Trading
Churchill Management Group
Community Capital Management
Cumberland Advisors
D.A. Davidson Companies
DBRS Morningstar
DWS Group
Dana Investment Advisors
DataTrek Research
Eventus
Factor, LLC
Financial Markets Training Ltd
FundX Investment Group
GMO
Guild Investment Management
Hatteras Investment Partners
Homer & Company
Impax Asset Management Group
In Touch Capital Markets
Janney Montgomery Scott
Johnson Investment Counsel
Kovitz
Lombard Odier Investment Managers
MJ Hudson
Maple Finance
McAlinden Research Partners
Montag & Caldwell
Morgan Creek Capital Management, LLC
Nara Capital
Newton Investment Management
North Star Asset Management
Oaktree Capital Management
OpenMetrics Solutions
Oxford Lane Capital Group
PGIM
Pacific Investment Management Company
Piper Sandler
Prophet Capital Asset Management
Salem Investment Counselors
Seilern Investment Management
Spectra Markets
Standard Life Aberdeen
Stifel
TCW Group
TD Securities
Tai Tam Capital
Templeton Growth Fund
The Vanguard Group
Trillium Asset Management
Valens Research
Verdad Advisers
Weldon Financial
Wide Moat Research
Zulauf Consulting
iShares Core U.S. Aggregate Bond ETF

Entity Types

Ratings Agency

Events

1946 to 1981 Bond Bear Market
Taper Tantrum

Strategies

Asset Allocation
Global Macro Strategy

Terms

Bond
Collateralized Loan Obligation
Debt Financing
Interest Rate
Modified Duration
Pension Fund
Reinvestment
Tranche

Wisdom

Credit Is An Opinion

Aaron Brown

Aaron Hodari

Aaron Kaplan

Aaron Uitenbroek

Adam Cohen

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Albert Yeh

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Alfonso Peccatiello

Ali Hassan

Amanda Tepper

Amelia Bourdeau

Andreas Clenow

Andreas Steno Larsen

Andrew Park

Andrew Saunders

Andrew Schneider

Andrew Schultz

Andy Edstrom

Andy Hecht

Angelo Robles

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Anneka Treon

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Carley Garner

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Cathie Wood

Cem Karsan

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Charles Tall

Charlie McGarraugh

Charlie Morris

Chen Zhao

Chiente Hsu

Chris Aitken

Chris Alexander

Chris Bailey

Chris Berry

Chris Castroviejo

Chris Cole

Chris DeMuth Jr

Chris Eddy

Chris Hohlstein

Chris Olsen

Chris Pavese

Chris Perkins

Chris Whalen

Christophe Ollari

Courtney Smith

Crista Huff

Dan Barclay

Dan Greenhaus

Dan Jerrett

Dan Morehead

Dan Passarelli

Dan Rasmussen

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Danielle Booth

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David Modiano

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Davis Edwards

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Diana Joseph

Diego Parrilla

Dominique Dwor-Frécaut

Don d'Adesky

Donald van Deventer

Doug Kinsey

Doug MacKay

Douglas Borthwick

Douglas Lucas

Drew Zager

Drianne Benner

Dwight Emanuelson

Dylan Grice

Ed Yardeni

Edward McQuarrie

Edwin Elton

Ehren Stanhope

Eileen Murray

Elaine Meyers

Eli Rauch

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Emad Mostaque

Emma Giamartino

Eric Crittenden

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Eric Peters

Euan Sinclair

Evan Lorenz

Fotios Piniros

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Frank Partnoy

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Galen Burghardt

Gareth Murphy

Gareth Soloway

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Gary Antonacci

Gavin von Loeser

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Geo Chen

Geoff Marcus

Geoffrey Webster

George Clark

George Goncalves

Gerald Jensen

Giuseppe Paleologo

Glen Strauss

Glenn Degenaars

Gontran de Quillacq

Grace Rodriguez

Greg Diamond

Greg Foss

Greg Obenshain

Greg Onken

Greg Reid

Greg Vaughan

Greg Weldon

Guillermo Dumrauf

Guy Cerundolo

Hari Krishnan

Harley Bassman

Harry Melandri

Hector Fernandez

Henry Ma

Hildy Richelson

Howard Penney

Howard Wang

Ira Walker

JC Parets

JG Savoldi

Jack Inglis

Jake Weber

James Ferguson

James Helliwell

James Medeiros

Jamie Coutts

Jamil Baz

Jan van Eck

Jared Bibler

Jared Dillian

Jason Dworak

Jason Hsu

Jason Moser

Jason Pagoulatos

Jason Raznick

Jawad Mian

Jay Canell

Jay Pelosky

Jay Soloff

Jean-Marie Mognetti

Jeannine Vanian

Jeff Dorman

Jeff Fischer

Jeff Gundlach

Jeff Kobernick

Jeff Marcus

Jeff Megar

Jeff Miller

Jeff Moore

Jeff Schulze

Jeff Weiss

Jeff Zirlin

Jeffrey Mettel

Jenny Harrington

Jens Nordvig

Jeremy LaKosh

Jeremy Schwartz

Jim Bianco

Jim Grant

Jim Puplava

Joe Karas

Joe McAlinden

Joel Litman

John Mousseau

John Ciampaglia

John Kiple

John Kosar

John Murphy

John Palmer

Jon Eilbeck

Jon Mawby

Jonas Thulin

Jonathan Beukelman

Jonathan Krane

Jordan Kotick

Jordan Waxman

Josh Gully

Josh Malkin

Josh Rosner

Julian Brigden

Julien Bittel

Juliette Declercq

Juliette Menga

Jurrien Timmer

Justin Saslaw

Jérôme Stern

Kamil Liberadzki

Kathy Jones

Keith Brown

Kelley Wright

Kent Collier

Kevin Coldiron

Kinjal Amin

Kokou Agbo-Bloua

Komal Sri-Kumar

Kori Hale

Kristina Hooper

Lacy Hunt

Larry McDonald

Larry Robbins

Larry Swedroe

Lars Seier Christensen

Lee Robinson

Leo Kolivakis

Leo LiVolsi

Leo Mizuhara

Leon Gaudiosi

Lev Dynkin

Lex van Dam

Liz Ann Sonders

Liz Young

Lloyd Khaner

Luis Garcia-Feijoo

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Luuk Strijers

Lyle LaMothe

Lyle Wolberg

Magdalena Polan

Marc Chandler

Marc Cohen

Marc Gerstein

Marcelo Lopez

Marcos Carreira

Marcos Douer

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Mario Oliviero

Mark Carney

Mark Cortazzo

Mark Cullen

Mark Douglass

Mark Dow

Mark Sebastian

Mark Shenkman

Mark Woolley

Marko Kolanovic

Markus Heitkoetter

Martin Gruber

Martin Leibowitz

Martin Pelletier

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Matt Peron

Matt Tucker

Matt Zames

Matteo Perruccio

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Matthew Waz

Matthias Knab

Max Galka

Meb Faber

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Michael Boyd

Michael Covel

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Michael Gayed

Michael Hintze

Michael Howell

Michael Kahn

Michael Kao

Michael Kramer

Michael Lebowitz

Michael Livian

Michael Nicoletos

Michael Petley

Michael Pusateri

Michael Rubenstein

Michelle Noyes

Mick McLaughlin

Mikael Sarwe

Mike Abrams

Mike Cahill

Mike Creadon

Mike Drury

Mike Gallagher

Mike Green

Mike Heroux

Mike Kantrowitz

Mike Ricca

Mike Robinson

Mike Simcock

Mike Taylor

Mish Schneider

Mish Shedlock

Moe Zulfiqar

Mona El Isa

Moss Crosby

Mustafa Chowdhury

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Neal Berger

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Neil Dutta

Neil George

Neil Schofield

Nelly Nyambi

Nick Lawson

Noel Weil

Noreen Beaman

Osman Ozsan

Pablo Calderini

Paul Isaac

Paul Mampilly

Paul McNamara

Paul Zemsky

Pei Chen

Peter Albano

Peter Bermont

Peter Boockvar

Peter Brandt

Peter Churchouse

Peter Lacalamita

Peter Seilern

Philip Fischer

Philippe Khuong-Huu

Pippa Malmgren

Prateek Mehrotra

Preston McSwain

Ram Ahluwalia

Ramsey Smith

Raoul Pal

Ray Nolte

Ray Uy

Rich Apostolik

Rich Pluta

Richard Saperstein

Richard Brostowicz Jr.

Richard Kim

Richard Lehmann

Richard Sandor

Richard Zinman

Rick Rieder

Rishi Narang

Rob Davis

Rob Kapito

Robert Balan

Robert Doty

Robert Levine

Robin Fink

Ronnie Stoeferle

Roxton McNeal

Rudy Martin

Russ Brownback

Russel Kinnel

Russell Napier

Ryan Ripp

Saagar Gupta

Sabrina Fox

Sahm Adrangi

Said Haidar

Saker Nusseibeh

Sam Burns

Samuel Rines

Sandra Kartt

Sarah Gefter

Scott Siegel

Scott Acheychek

Scott Army

Scott MacKillop

Scott Skyrm

Scott Stackman

Scott Wood

Serge Berger

Sergio Silva

Sethu Bijumalla

Shawn Fowler

Shirl Penney

Siddhartha Jha

Simon Ree

Slobodan Jovanovic

Srinivas Thiruvadanthai

Stefan Kreuzkamp

Stephanie Ruhle

Stephen Antczak

Stephen Castellano

Stephen Lee

Stephen Paras

Stephen Weiss

Steve Hollomon

Steve Kaczmarek

Steve Kurz

Steve Miley

Steven Bavaria

Steven Bleiberg

Steven Goldstein

Steven Hawkins

Steven McClurg

Sudhu Arumugam

Sven Miserey

Sylvain Raynes

Tad Rivelle

Taimur Baig

Tariq Dennison

Terrence Belton

Terri Jacobsen

Thejas Nalval

Theodore Barnhill

Thomas Braziel

Thomas Riegert

Tim Maloney

Todd Battaglia

Todd Edgar

Todd Silaika

Tom Caddick

Tom Frame

Tom Gahan

Tom Lee

Tom Moran

Tom Trowbridge

Tommy McBride

Tony Crescenzi

Tony Greer

Tony Mackenzie

Tony Pasquariello

Tony Saliba

Trevor Mottl

Tristan Lewis

Troy Thornton

Vicki Bryan

Victor Livingstone

Viktor Shvets

Vince DiLullo

Vince Sarullo

Vincent Catalano

Vincent Randazzo

Vineer Bhansali

Vishal Reddy

Warren Pies

Will Braman

Will Rhind

Woody Brock

Xavier Rolet

Yan Liberman

Yannik Zufferey

Zach Scheidt

Zed Francis

KEY NOTES

  • Government and corporate bonds are the most common types of fixed-income products.

  • For most investors, stocks and bonds go together like peanut butter and jelly. They’re the two main pillars of a well-balanced portfolio, the key ingredients in your long-term wealth.

  • Many people shift their portfolios toward a fixed-income approach as they near retirement, since they may need to rely on their investments for regular income.


TYPES OF FIXED INCOME PRODUCTS


FIXED INCOME ADVANTAGES

  • Diversification. Investors never want to have their eggs in one basket. It is true that stocks tend to beat bonds over the long haul, but you’re better off moderating your risk, especially in the near term.

  • Income Generation. Due to the fixed coupon payments that investors receive at specified intervals, bonds can provide a steady and predictable flow of income.

  • Corporate Preservation. Bonds make sense for money that you’ll need in five–to–10 years, an important consideration for retirees who are more sensitive to portfolio volatility as they have less time to recoup losses.


FIXED INCOME RISKS