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Fixed income terminology 101

Switzer Daily 17 December 2020 For investors, fixed-income holdings such as bonds can offer many benefits including lower risk, stable income streams and an opportunity to diversify their portfolio. However, investors who are new to the world of fixed income often find bonds hard to comprehend, in part because they have their own unique terminology. Understanding this can help to demystify the world of fixed income, so here’s a quick introduction to some of its most commonly used expressions. When you buy a bond, you are lending money to an institution such as a company or a government. You become a

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