From the course: Fixed Income Fundamentals

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What is fixed income?

What is fixed income?

From the course: Fixed Income Fundamentals

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What is fixed income?

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- [Instructor] So what is fixed income? Fixed income is a broad class of financial products that comprises any investment where the investor earns a set payment on a predetermined schedule. It's a debt-type instrument, as opposed to something like equities or stocks. Common fixed income investment products include bonds, vanilla and exotic derivatives, asset-backed securities, known as ABS, and mortgage-backed securities, known as MBS, as well as preferred securities. In this fixed income fundamentals course, we will focus on the plain vanilla bond, which is the basic building block of fixed income. Later fixed income courses in the CMSA will discuss these other investment products in greater detail. Going back to bonds, the simple way of understanding bonds is that it's kind of like a loan. Loans can be secured or unsecured. It can have a set repayment schedule or have a bullet repayment, and it can also have a fixed rate of interest or floating, just like a bond.

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