Fixed Income analysis on Fidelity.com can be used as a tool to help manage your cash flow and gain insights into the composition of your holdings. In this video you will learn about the information available to analyze a bond investment for both cash flow and risk impact on a pre-trade basis.
The Fidelity Bond Ladder Tool can help you build a portfolio of bonds with staggered maturity dates in an effort to provide you with a consistent income stream. This video will provide you with an overview of the basic requirements and navigation to purchase a bond ladder.
Investing in individual bonds can often require a more strategic, sophisticated approach than, say, choosing one or two bond funds, but there are unique benefits for those willing to commit the time.
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.