Fixed income instruments are bonds and loans with a fixed interest rate. These debt reduction instruments used by government agencies help organizations raise capital for a variety of reasons.

The fixed income market trades in bonds and loans. Fixed income instruments also trade in derivative instruments such as futures, swaps and options. A fixed income instrument, such as a bond, usually has a longer term than a money market instrument. The fixed income market typically deals in terms longer than twelve months.

Bond markets most often deal in government bonds and government backed bonds. This type of fixed income tool provides money to an agency almost like an I.O.U. The bond purchaser gets the initial investment back plus a dividend based on a fixed income rate.

Most financial advisors recommend a diversified portfolio made up of fixed income instruments as well as stocks, mutual funds and cash. Fixed income investment instruments will:

1. Provide a fixed rate of return for customers for the life of the bond.

2. Keep customer's portfolios diversified with both bond market and stock market products.

3. Offer a stream of income for balanced investing.

4. Include fixed income investment analysis tools for financial planners and brokers.

Action Steps
The best contacts and resources to help you get it done

Look for fixed income technical analysis

Analysis tools are vital for debt comparison in the fixed income markets. The right analysis tools help professionals stay informed and make trading easier in the global market.

I recommend: Reuters has the best analysis tools available for professionals trading in fixed income markets.

Stay informed about new fixed income securities products

Current information is key to providing customers with the best products at the best rate of return for their investment. The purpose of fixed income investing is to give clients stream of income products they can trust over time.

I recommend: InvestinginBonds.com has up to the minute information about current bond market trends and products.

Stay ahead of the pack with top quality fixed income instrument companies

Financial advisors need the best products and services to retain clients and keep them confident. Large investment firms provide variety and quality for both agents and customers. Customers want names they can trust when reviewing their portfolio.

I recommend: Citigroup is a full service investment banking firm offering a full range of fixed income investment opportunities. Merrill Lynch is also a trusted name in the fixed income market with a large variety of great products and excellent customer service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Trading in the fixed income market requires not only good analysis tools, but reliable information on pricing, company data and future performance. The right research and analysis tools are essential for quality performance in fixed income bond markets.