- Fixed income is a class of assets and securities that pay a set level of cash flows to investors, usually in the form of fixed interest or dividends.
- Government and corporate bonds are the most common types of fixed income products.
- They are known as fixed income instruments because they pay out a fixed interest rate credited to investors.
- At the maturity of many fixed income securities, investors are paid back the principal they have invested, in addition to the interest received.
- In the event of a company going bankrupt, fixed income investors are often paid earlier than ordinary shareholders.