Types of Fixed Income
A banker's acceptance (BA) is a short-term debt instrument issued by a company that is guaranteed by a commercial bank. Banker's acceptances are issued as part of a commercial transaction.
Fixed Income & Bonds Fixed income investments generally pay a return on a fixed schedule, though the amount of the payments can vary. Individual bonds may be the best known type of fixed income security, but the category also includes bond funds, ETFs, CDs, and money market funds.
A guaranteed investment (interest) certificate is a deposit investment security that Canadian banks and trust companies sell. A guaranteed investment (interest) certificate is a deposit investment security that Canadian banks and trust companies sell.
A bond ladder is a portfolio of fixed-income securities in which each security has a significantly different maturity date. A bond ladder is a portfolio of fixed-income securities in which each security has a significantly different maturity date.
NHA Mortgage-Backed Securities If you are looking for an alternative fixed income investment that combines attractive yields with the security of
Fixed-income investments generally pay a fixed rate of return on a fixed schedule. Thus, the best example in investing is a bond, which will pay the investor a set amount of interest every six months and return an investor's principal upon maturity.
Strip Coupons and Residuals Strip coupons and residuals are instruments purchased at a discount that mature at par (100). They grow over time and while any interest income is not payable until maturity, a nominal amount of interest is accrued each year and must be claimed as income by the purchaser for tax purposes.
Information on fixed-income securities can be found on Securities Industries and Financial Markets Association website. Government statistics on flows and ownership of fixed-income securities are available through the Treasury International Capital System data and the Federal Reserve Board’s Flow of Funds data.