Articles on Fixed Income Securities

What are Fixed Income Securities?

This article explains the concept of fixed-income securities. It lists some common defining features of fixed income securities. It also explains the importance of this market in the global context.

Types of Fixed Income Securities

This article explains how the fixed-income securities market is not a homogenous market. It explains how there are various types of fixed income securities that can be used by different investors for different purposes.

Types of Coupon Rates in Fixed Income Securities

This article explains the concept of different types of coupon rates. It also explains the differences between these rates and why some types of coupon rates are better than others in some situations.

Cash Flow Types in Fixed Income Securities

This article explains the various types of cash flow structures and patterns that are common in the fixed income securities market. It provides a brief introduction while enumerating the benefits and drawbacks of these structures.

Bond Indentures and Covenants

This article explains the concept of bond covenants and bond indentures. It explains the different types of covenants that are commonly used. It also explains the financial implications of not abiding by the covenants.

Types of Covenants

This article explains the details about covenants. It explains the two major types of covenants and the difference between them. It also explains how covenants impact other stakeholders such as equity shareholders as well as the management of the firm.

Common Restrictive Covenants in Fixed Income Securities

This article explains the concept of restrictive covenants and how they impact the interests of investors. It also explains the various types of restrictive covenants which are commonly used in bond indentures.

Embedded Options in Fixed income Securities

This article explains the concept of how options are used in fixed-income securities. It explains the case of callable as well as puttable bonds. It also explains how these values give advantages to different parties in different situations. It also explains the reasoning which is followed while valuing such bonds.

Zero-Coupon Bonds: Pros and Cons

This article explains the concept of zero-coupon bonds. It explains the differences between zero-coupon bonds as well as regular bonds. Lastly, it mentions the pros and cons of investing in fixed income bonds in detail.

Step Up Bonds: Pros and Cons

This article explains the concept of step-up bonds. It also explains the pros and cons of investing in such bonds. A detailed list of pros and cons has been elaborated on in this article.

Payment in Kind Bonds - Advantages, Disadvantages and its Types

This article explains the concept of payment in kind bonds. It also provides a detailed list of the pros and cons of such bonds. The article also provides a detailed explanation about Different types of payment in kind bonds as well the accounting and taxation implications of issuing payment in kind bonds. Lastly, the article also states that the cons vastly outnumber the pros of this financial instrument.

Treasury Inflation-Protected Securities (TIPS)

This article explains the concept of treasury inflation-protected securities. It explains how these securities work and how they are different as compared to floating rate securities. However, it also explains the disadvantages of buying these securities.

What is Convertible Debt?

This article explains the concept of convertible debt. It explains how convertible debt is different from regular debt. It also explains some of the terms which are commonly used while discussing the issue of convertible debt.

Advantages and Disadvantages of Convertible Debt

This article explains the advantages and disadvantages of convertible debt. The details of all advantages and disadvantages have been listed in detail in this article.

Accounting for Convertible Debt

This article explains the accounting effects of convertible debt. It tries to simplify the complex logic behind accounting entries so that they can be explained to an average investor.

Reverse Convertible Bonds

This article explains the concept of reverse convertible bonds. It also explains the two types of reverse convertible bonds which are commonly used by investors. The article also explains how these bonds have embedded derivatives that indirectly influence the price of the bonds.

Advantages and Disadvantages of Reverse Convertible Bonds

This article explains the advantages and disadvantages of reverse convertible bonds. The important pros and cons have been listed and explained in detail in this article.

High Yield Bonds

This article explains the concept of high yield bonds. It explains the characteristic features of high yield bonds. The article also describes the various types of high yield bonds that are commonly traded in the market.

Advantages and Disadvantages of High Yield Bonds

This article explains the pros and cons of investing in high-yield bonds. The comparison between high yield bonds and regular bonds has been made in order to provide more clarity to the prospective investors.

Preferred Shares: An Introduction

This article explains the concept of preferred shares. It explains why preferred shares are hybrid security meaning that they have features of both equity as well as debt securities. It explains the characteristic features of preferred shares.

Advantages and Disadvantages of Preferred Shares

This article explains the various advantages and disadvantages of investing in preferred shares. The article evaluates the preferred shares asset class from the point of view of a prospective investor.

Covered Bonds

This article explains the concept of covered bonds. It also explains the various advantages and disadvantages of issuing covered bonds. The reasons behind the worldwide popularity of covered bands have been explored in this article.

Conditional Pass-Through Covered Bond

This article explains the concept of conditional pass-through covered bonds. It explains the issues which investors, as well as issuers, face when they issue regular covered bonds. It also explains how conditional pass-through covered bonds help resolve some of the major issues.

Why do Investors Hold Fixed Income Securities?

This article explains the various motivations which bondholders have when they buy and hold fixed income securities. The diverse thought processes which lead to different types of motivations have also been explained in this article.

What are STRIP Bonds?

This article explains the concept of STRIP bonds. It explains what STRIP bonds are and how they work. Lastly, it also explains the major advantages which accrue as a result of investing in STRIP bonds.

What are Sustainability Bonds?

This article explains the concept of sustainability bonds. It also explains how sustainability bonds are different from green bonds and social bonds. The reasons behind the rise in the popularity of sustainability bonds have also been explored in this article.

Pandemic Bonds

This article explains the concept of pandemic bonds. It also explains how pandemic bonds work and what are some of the big advantages of issuing pandemic bonds.

Municipal Bonds

This article explains the concept of municipal bonds. It explains the different types of municipal bonds. It also explains the pros and cons of investing in municipal bonds.

What are Eurobonds?

This article explains the concept of Eurobond markets. It explains the reasons behind the existence of this market. It also compares the Eurobond market with other types of bond markets in order to explain the difference in a clear and concise manner.

Yield To Maturity (YTM)

This article explains the concept of yield to maturity. It also explains how yield to maturity is calculated. The components of yield to maturity as well as its limitations have been discussed in this article.

Yield to Call

This article explains the concept of yield to call. It also explains how the yield to call is calculated. Lastly, it also explains how the yield to call is used to make important investment decisions.

Introduction to Yield Curve

This article explains the concept of the yield curve. It explains how the yield curve is derived. It describes how the yield curve can be used to make comparisons between different types of bonds. It also explains the various other uses of the yield curve.

Inverted Yield Curve

This article explains the concept of the inverted yield curve. It also explains the common causes which lead to the presence of the inverted curve. It also lists the impacts which arise as a result of the sighting of the inverted yield curve.

Bond Duration

This article explains the concept of bond duration. The basics of bond duration have been explained. The article explains what bond durations is and how it should be interpreted. It also lists down some common rules related to bond duration calculation.

The Calculation of Bond Duration

This article explains the process which is used to calculate the duration of an individual bond. It also explains the process which is used to calculate the duration of an entire portfolio. Factors that have an impact on the duration of the bond have also been listed.

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