If you're someone looking for a secure investment option, fixed-income trading might just be what you're looking for. Fixed-income is a type of investment where the investor receives a fixed amount of income at fixed intervals. This is generally seen as a low-risk investment option when compared to others in the financial market. However, it's important to remember that all investments carry some level of risk. That’s why we’ve created this helpful guide so you can decide if it’s right for you.

Understanding fixed-income trading.

Fixed-income investments can take various forms including bonds, treasury bills, notes, and certificates of deposit (CDs). Each of these instruments has its own set of rules and regulations, and it's important to have an understanding of the details to make an informed decision.

When it comes to trading, fixed-income instruments are sold through brokers, banks, and financial institutions. These institutions match investors with issuers of fixed-income securities and handle the transaction. This is important to remember as it's often necessary to get in touch with these institutions to initiate a trade.

It's also important to remember that the value of fixed-income investments can fluctuate depending on market conditions. However, for the most part, these fluctuations are not as extreme as the volatility experienced in the stock market.

Benefits of fixed-income trading.

Steady income.

As mentioned earlier, fixed-income provides the investor with a steady income at regular intervals. This can be yearly, semi-annually, or monthly depending on the nature of the investment. This is especially beneficial for individuals who require a steady source of income for their living expenses.

Low risk.

Fixed-income trading is generally considered to be low-risk, as it's less susceptible to sudden market swings. Therefore, it provides some protection in times of economic downturns which gives investors a better peace of mind.

Portfolio diversification.

This investment option can also help diversify an investor's portfolio, which can help reduce risk. A fixed-income investment can counterbalance other higher-risk investments in an investor's portfolio to build a well-balanced strategy.

Inflation protection.

These investments often have inflation protection as part of their terms. This can help protect the investment against the effects of inflation and prevent a decrease in the return on investment (ROI).

Predictable returns.

It’s easier to estimate and predict the returns on investments with a fixed interest rate, and that’s precisely what you get with fixed-income. This predictability is one of the key reasons that investors consider fixed-income investments when looking for steady returns.

How can DataVerse Systems help you grow your portfolio?

Fixed-income investments offer a predictable low-risk return and can be a great way to diversify your investment portfolio. It's important to do your research before investing and to understand the tradeoffs between risk and return. Luckily, the team at DataVerse Systems is here to help you along the way.

We have over 25 years of experience building trading systems, portfolio management systems, and accounting systems for major investment firms. Our BasisPoint analytics library and web service provides 50+ basic and advanced bond analytics, giving you the leverage you need to maximize your investments.

BasisPoint gives you the ability to build-in security terms and conditions, and it interfaces to any internal application, including trading, portfolio monitoring, performance attribution, and accounting. With our technology, you’ll have global coverage of all major markets. Plus, it conforms to industry standards, so it easily matches calculations for the most well known fixed-income vendors.

Start investing today!

DataVerse Systems is committed to developing superior software, thoughtfully designed with attention to detail, and all our clients receive first-class support. We don’t hand you off to a third-party support provider. As our client, you can speak directly with our development staff to answer questions.

Learn more about our solutions online, or reach out today to request your demo.