Fixed Income
Fixed income investments provide predictable interest payments and return of principal at maturity. This article explains how fixed income works, outlines common product types, and examines strategies, benefits, and risks associated with these securities.
Glossary
The federal funds rate is the interest rate banks charge each other for overnight loans of excess reserves. Because it is determined daily by market activity, it is considered a sensitive indicator of interest rate direction.
Glossary
A Certificate of Deposit (CD) is a savings product that earns interest on a fixed sum of money for a set period, requiring funds to remain deposited until maturity to avoid penalties.
Glossary
A bond is a fixed-income investment in which an investor lends money to a government or corporation in exchange for regular interest payments and repayment of principal at maturity.
Glossary
An adjustable-rate mortgage (ARM) is a home loan with an interest rate that changes periodically based on a reference index, causing payments to rise or fall over time after an initial fixed period.