Fixed income

Fixed income refers to any kind of investment that yields a regular (or fixed) return.
For example, if you make use of money and have to pay interest once a month, you have issued a fixed-income security. When a company does this, it is often called a bond or corporate bank debt although 'preferred stock' is also sometimes measured to be fixed income. Sometimes people misspeak when they talk about fixed income; bonds really have higher risk, while notes and bills have less risk because these are issued by Government agencies.

The term fixed income is also useful to a person's income that does not vary with each period. This can include income derivative from fixed-income investments such as bonds and preferred stocks or pensions that guarantee a fixed income.