Fixed Income Primers
Primers on the fixed income market
- Asset-Backed Securities
Asset-backed securities (ABS) are bonds or notes collateralized by the cash flows from a specified pool of underlying assets. - Corporate Bond Market
Corporate bonds (or “corporates”) comprise a category of fixed income securities issued by private and public corporations. - High-Yield Bond Market
The high-yield or “below investment-grade” segment of the bond market is comprised of all securities rated BB or lower by Standard & Poor’s® (S&P), and Ba or lower by Moody’s Investors Service® (Moody’s). - Interest Rate Swaps
Interest rate swaps are agreements between two parties to exchange or “swap” cash flow streams. - Mortgage-Backed Securities
Mortgage-backed securities (MBS) are bonds backed by a pool of personal loans used to finance the purchase of homes or other real estate. - Municipal Bond Market
Municipal bonds (or “munis”) are fixed income securities issued by state and local governments.
Copyright 2007 Dwight Asset Management Company