We aim to generate consistent outperformance by systematically applying investment themes across securities. We believe that a multi-factor investment approach, harnessing underlying drivers of performance, will generate excess returns that are uncorrelated to other asset classes as well as traditional fixed income managers.
What Is Fixed Income?
Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until their maturity date. At maturity, investors are repaid the principal amount they had invested. Government and corporate bonds are the most common types of fixed-income products.
Unlike equities that may pay out no cash flows to investors, or variable-income securities, where payments can change based on some underlying measure—such as short-term interest rates—the payments of a fixed-income security are known in advance and remain fixed throughout.
Key Takeaways
- * Fixed income is a class of assets and securities that pay out a set level of cash flows to investors, typically in the form of fixed interest or dividends.
- * Government and corporate bonds are the most common types of fixed-income products.
- * They are known as fixed-income because they pay a fixed interest rate credited to investors.
- * At maturity for many fixed income securities, investors are repaid the principal amount they had invested in addition to the interest they have received.
- * In the event of a company's bankruptcy, fixed-income investors are often paid before common stockholders.
