Fixed Income Securities

These flashcards cover key concepts and definitions related to fixed income securities, including types of investments, market features, and relevant financial instruments.

Fixed Income Securities

Financial instruments that provide returns in the form of regular, or fixed, interest payments and the return of principal at maturity.

Time Deposit

A bank deposit where funds are held for a fixed term and cannot be withdrawn before maturity without penalty.

Money Market Fund

A type of mutual fund that invests in short-term debt securities and offers higher interest than regular savings accounts.

Bonds

Debt investments in which an investor loans money to an entity for a defined period at either fixed or variable interest rates.

Maturity

The length of time until the borrower must repay the bond's face value.

Coupon Rate

The interest rate that the issuer agrees to pay bondholders, typically expressed on an annual basis.

Callable Bond

A bond that allows the issuer to redeem it before the maturity date.

Puttable Bond

A bond that allows the bondholder to redeem it before the maturity date.

Sinking Fund

A fund created to set aside money for repaying a bond or debt as it matures.

Mutual Fund

A company that pools funds from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

UITF (Unit Investment Trust Fund)

An open-ended pooled trust fund that is operated and administered by a trust entity.