What is Fixed Income?

Did you know that the fixed income market is the largest securities market in the world, well surpassing even our global sharemarkets? That's a kind of a big deal.

You may think you're not familiar with fixed income, but if you have your money in a Term Deposit (TDs), then you probably know more than you think.

Fixed income is really any investment where an investor lends money to a borrower or issuer, where the issuer then makes payments (interest or coupons) to the investor of either a fixed amount, or an amount linked to a moving benchmark.

Income payments are then paid to the lender on a fixed schedule of dates, and the entire amount lent (the principal) is paid back to you on a fixed date. Hence the term fixed income.

There are lots of ways we can access fixed income - some are products listed on the ASX like Hybrids and XTBs. In the 'unlisted' realm there are products such as Bonds.

In our our latest blog by Tracey Franks we cover an introduction to the world of fixed income. Click here to read on!