Fixed income securities provide investors with a stream of fixed periodic interest payments and a possible repayment of principal at maturity.
Bonds are the most common type of fixed income securities, but others include certificates of deposit, money markets, and preferred stock.
Not all bonds are the same. In other words, different bonds have different terms, as well as credit ratings assigned to them depending on the financial solvency of the issuer.
The US Treasury guarantees fixed income government securities, making these investments very low risk, but also relatively low returns.