Fixed income

Fixed income is an investment category centered on debt securities that provide scheduled interest or other predictable cash flows, such as bonds.

Bond: A debt security that represents a borrower's obligation to repay principal and usually make interest payments. Bonds are the central instruments in fixed-income portfolios.
Duration (finance): A measure of a bond's cash-flow timing and sensitivity to changes in interest rates. Duration estimates how much a fixed-income holding may change in value when yields move.
Government bond: A debt security issued by a national or regional government to finance public spending. Government bonds are a major source of fixed-income exposure and benchmark yields.
Equity security: A financial claim representing ownership in a company or other entity. Equities offer ownership returns rather than a lender's contractual claim on payments.
Sovereign debt: Debt issued or guaranteed by a national government. Government fixed-income markets are a central channel for financing states and pricing public borrowing.
Coupon: The stated interest payment a bond issuer makes to its holder, usually at regular intervals. Coupons are the scheduled income stream behind many fixed-income securities.
Convexity (finance): A measure of how a bond's duration changes as its yield changes. Convexity refines duration's estimate of price changes for larger yield movements.
Corporate bond: A debt security issued by a company to raise borrowed capital from investors. Corporate bonds add company credit exposure to fixed-income portfolios.
Money market instrument: A short-term debt instrument that typically matures within one year. Money market instruments share debt-like cash flows but generally have shorter maturities.
Monetary policy: Central-bank actions that influence money, credit conditions, and economic activity. Policy-rate changes pass through bond yields and affect fixed-income valuations.

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Price RevolutionRelated: Inflation eroded the purchasing power of creditors and landlords with fixed payments.