Fixed income analysis is the valuation of fixed income or debt securities, and the analysis of their interest rate risk, credit risk, and likely price behavior in hedging portfolios. The analyst might conclude to buy, sell, hold, hedge or stay out of the particular security.
Fixed income products are generally bonds issued by various government treasuries, companies or international organizations. Bond holders are usually entitled to coupon payments at periodic intervals until maturity. These coupon payments are generally fixed amounts (quoted as percentage of the bond's face value) or the coupons could float in relation to LIBOR or another reference rate.
Read more about Fixed Income Analysis: Valuation, Further Reading
Famous quotes containing the words fixed, income and/or analysis:
“Museums, museums, museums, object-lessons rigged out to illustrate the unsound theories of archaeologists, crazy attempts to co-ordinate and get into a fixed order that which has no fixed order and will not be co-ordinated! It is sickening! Why must all experience be systematized?... A museum is not a first-hand contact: it is an illustrated lecture. And what one wants is the actual vital touch.”
—D.H. (David Herbert)
“Italy is such a delightful place to live in if you happen to be a man. There one may enjoy that exquisite luxury of Socialismthat true Socialism which is based not on equality of income or character, but on the equality of manners. In the democracy of the caffè or the street the great question of our life has been solved, and the brotherhood of man is a reality. But it is accomplished at the expense of the sisterhood of women.”
—E.M. (Edward Morgan)
“Analysis as an instrument of enlightenment and civilization is good, in so far as it shatters absurd convictions, acts as a solvent upon natural prejudices, and undermines authority; good, in other words, in that it sets free, refines, humanizes, makes slaves ripe for freedom. But it is bad, very bad, in so far as it stands in the way of action, cannot shape the vital forces, maims life at its roots. Analysis can be a very unappetizing affair, as much so as death.”
—Thomas Mann (18751955)