The Fixed Income Clearing Corporation is the clearing house for certain fixed income securities traded in the United States.
The Agency operates as a subsidiary of the Depository Trust and Clearing Corporation.
FICC was established in 2003 as a result of the merger of the Government Securities Clearing Corporation and the Mortgage Backed Securities Clearing Corporation.
The primary goal of the FICC is to ensure efficient and systematic settlement of government and mortgage-backed securities.
The two main divisions of FICC are the Government Securities Division and the Mortgage-backed Securities Division.
Average life is the average length of time it takes to pay off the outstanding principal on a debt instrument, such as a treasury bill, bond, loan, or mortgage-backed security.
A normal yield curve is a yield curve in which short-term debt instruments have a lower yield than long-term debt instruments of the same credit quality.
Realized yield is the actual profit earned during the investment’s holding period and may include dividends, interest payments, and other cash payments.
Revolving debt with a variable coupon is repaid every week, with the principal reinvested at a new interest rate, which is reset at a fixed spread relative to the base rate.