fixed-income security

Fixed-Income Security

A security with a guaranteed return. Common examples include bonds, which pay periodic coupons representing a certain interest rate, and preferred stocks, which are legally required to receive a specified dividend at certain times. Typically, fixed-income securities offer lower risk and lower returns than common stock and similar investment vehicles.

fixed-income security

A security, such as a bond or preferred stock, that pays a constant income each period. Price changes in a fixed-income security are caused primarily by changes in long-term interest rates.
References in periodicals archive ?
First, translate complex calculations into understandable and useful approximations.At one firm, for example, the interest rate risk exposure of every fixed-income security was translated into the corresponding quantities of two-year, 10-year and 30-year treasuries that, if sold, would offset that exposure.
Procedures for using the HP12C financial calculator for fixed-income security pricing are given.
(In contrast, the City of Pittsburgh and its vendor are attempting to automate these tasks.) Besides institutional inertia, difficulties facing Internet trading include illiquidity, meaning that a given fixed-income security is bought and sold much less frequently than a typical stock.
Because duration is superior to maturity length for judging the price volatility of a fixed-income security, the concept has important applications for financial officers managing investment portfolios.

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