Fixed Income Markets

Fixed-income products are characterized by regular income streams, typically paid annually or semi-annually, until the investment reaches its maturity. In the cash markets, common products include bonds, interest rate swaps, and credit default swaps. More generally, this market contains instruments whose values depend on the level of interest rates and the likelihood of credit events such as default. In addition, there is a futures and options market which builds on the cash products, adding rights or obligations to be exercised in the future.