Fixed-Income Security

An investment that provides a return in the 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 known in advance.

An example of a fixed-income security would be a 5% fixed-rate government bond where a $1,000 investment would result in an annual $50 payment until maturity when the investor would receive the $1,000 back. Generally, these types of assets offer a lower return on investment because they guarantee income.


Investment dictionary. . 2012.

Look at other dictionaries:

  • fixed–income security — see security Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • fixed income security — An investment that provides a return in the form of fixed periodic payments and eventual return of principle at maturity. Unlike a variable income security where payments change based on some underlying measure, such as short term interest rates …   Financial and business terms

  • fixed income security — An investment that provides a return in the form of fixed periodic payments and eventual return of principle at maturity. Unlike a variable income security where payments change based on some underlying measure, such as short term interest rates …   Euroclear glossary

  • fixed-income security — See bond (1) …   Financial and business terms

  • fixed interest security — A fixed interest security is an investment which has a return consisting of income in the form of interest payments and either a redemption value of the security when it eventually matures or the market value of the security if the investor sells …   Financial and business terms

  • Fixed income attribution — refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio …   Wikipedia

  • Fixed-income attribution — refers to the process of measuring returns generated by various sources of risk in a fixed income portfolio, particularly when multiple sources of return are active at the same time. For example, the risks affecting the return of a bond portfolio …   Wikipedia

  • Fixed income — refers to any type of investment that yields a regular (or fixed) return. For example, if you lend money to a borrower and the borrower has to pay interest once a month, you have been issued a fixed income security. When a company does this, it… …   Wikipedia

  • Fixed Income — A type of investing or budgeting style for which real return rates or periodic income is received at regular intervals at reasonably predictable levels. Fixed income budgeters and investors are often one and the same typically retired individuals …   Investment dictionary

  • Fixed income analysis — is the valuation of fixed income or debt securities, and the analysis of their interest rate risk, credit risk, and likely price behavior in hedging portfolios. The analyst might conclude to buy, sell, hold, hedge or stay out of the particular… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.