New issue fixed income choices in a challenging rate environment

Even as the economy recovers from the worst impacts of the Covid-19 virus many investors continue to seek a combination of safety, return, and liquidity for at least a portion of their investments or savings. Despite the challenges of today's low interest rate environment, new issue brokered CDs and new issue corporate notes can potentially provide individual investors fixed income investments that are simple to understand and easy to access. Watch Fidelity fixed-income professionals Patrick Deignan, Dan Fiandaca, and Richard Carter as they discuss the similarities and differences between these two products and why certain issuers participate in them. They walk through how investors can easily use the resources available on and the Fidelity Mobile app to assess the relative risks and potential rewards of an offering before investing.

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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, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Foreign investments involve greater risks than U.S. investments, and can decline significantly in response to adverse issuer, political, regulatory, market, and economic risks. Any fixed-income security sold or redeemed prior to maturity may be subject to loss.

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