• 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.