Mammoney - Your Ultimate Guide to Personal Finance & Investing

Fixed income investments have long been a cornerstone of diversified investment portfolios. They offer predictable income streams and lower risk compared to equities, making them an attractive option for conservative investors. However, with interest rates at historic lows, traditional fixed income strategies may not be sufficient to meet investors' income and return objectives. In this article, we will explore advanced fixed income strategies that can enhance yield and manage risk more effectively. Understanding Fixed Income Securities Before diving into advanced strategies, it's essential to understand the different types of fixed income securities. These include: Government Bonds : Debt securities issued by national governments, considered one of the safest investments. Corporate Bonds : Debt securities issued by corporations, offering higher yields than government bonds but with higher risk. Municipal Bonds : Debt securities issued by local governments, often offering tax a...