Articles on 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.