• Print
  • Default text size A
  • Larger text size A
  • Largest text size A

Fixed income yield and beyond

  • Fixed Income

Overview

Image: Green chalkboard

In this course you’ll learn about the different characteristics and uses of fixed income investments. With a better understanding of how fixed income investments can be utilized you can decide which fixed income investments may be right for your portfolio.

Objectives

When you complete this course, you will:

  • Be familiar with the characteristics and functions of fixed income investments
  • Comprehend the risks and benefits associated with more complex fixed income choices
  • Determine which fixed income strategy or strategies may be right for your portfolio
Course Outline
Title Type Highlight
1. Risks of fixed income investing Article
Fixed income is generally considered to be a more conservative investment than stocks; however, investors should still be aware of the potential risks that bonds and other fixed income investments may carry.
Fixed income is generally considered to be a more conservative investment than stocks; however,...
More
2. What is a yield curve? Article
The yield curve is one of the most important tools to gauge investor sentiment regarding interest rates. If you understand how to interpret a yield curve, it may even be used to help gauge the direction of the economy.
The yield curve is one of the most important tools to gauge investor sentiment regarding interest...
More
3. Tax implications of bonds and bond funds Article
The "Introduction to fixed income" course explained the differences between bonds and bond funds. Now let's dig a little deeper and discuss the importance of knowing the tax implications of both.
The "Introduction to fixed income" course explained the differences between bonds and bond funds....
More
4. Bond investment strategies Article
In this lesson we discuss the importance of being diversified across maturity dates when investing in individual bonds. Bond ladders, barbells and bullets are three strategies that may help you achieve this.
In this lesson we discuss the importance of being diversified across maturity dates when investing...
More
5. What are Fixed Rate Capital Securities (FRCS)? Article
Pay special attention to the section on liquidity risk. Too often investors underestimate the impact liquidity can have on an investment, particularly when markets are volatile.
Pay special attention to the section on liquidity risk. Too often investors underestimate the impact...
More
6. What are Mortgage-Backed Securities? Article
Mortgage-backed securities typically offer yields that are higher than government bonds. Securities with higher coupons offer the potential for greater returns but carry increased credit and prepayment risk, meaning the realized yield could be lower than initially expected.
Mortgage-backed securities typically offer yields that are higher than government bonds. Securities...
More

Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

Diversification/Asset Allocation does not ensure a profit or guarantee against loss. 

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.


Any fixed income security sold or redeemed prior to maturity may be subject to loss.

602733.5.0