Research Quarterly: Fixed Income - Outstanding (2024)

FAQs

What is fixed-income credit research? ›

Fixed Income Research Definition: In fixed income research, finance professionals analyze companies' debt issuances and make pricing and investment recommendations based on their outlook for each one.

Global fixed income markets outstanding increased 5.9% Y/Y to $140.7 trillion in 2023, while global long-term fixed income issuance decreased 0.1% to $25.2 trillion. Global equity market capitalization increased 13.4% Y/Y to $115.0 trillion in 2023, as global equity issuance increased to $422.2 billion, +3.3% Y/Y.

The fixed-income market is more commonly referred to as the debt securities market or the bond market. It consists of bond securities issued by the federal government, corporate bonds, municipal bonds, and mortgage debt instruments.

Once you've acquired a Bachelor's Degree in Finance or a related field, you'll typically begin your career as an entry-level Fixed Income Analyst. In general, you can become a Fixed Income Analyst after completing your 4 year Bachelor's Degree in a related discipline.

Fixed-income securities are debt instruments that pay a fixed rate of interest. These can include bonds issued by governments or corporations, CDs, money market funds, and commercial paper.

Investing in longer-term fixed-income securities can help lock in higher yields before rates fall. Increasing the duration of a bond portfolio can be beneficial when interest rates peak, as long-term bonds have more significant potential for capital appreciation during periods of falling rates.

The SIFMA Foundation is an educational non-profit organization dedicated to fostering knowledge and understanding of the financial markets for individuals of all backgrounds, with a focus on youth in underserved communities and students of color.

We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.

Investments that can be appropriate include bank CDs or short-term bond funds. If your investing timeline is longer, and you're willing to take more risk in order to potentially earn higher yields, you might consider longer-term Treasury bonds or investment-grade corporate or municipal bonds.

Who is the largest borrower in the debt market? ›

India takes the top spot. The world's most populous country owed $38.3bn to the WB at the end of 2022, down by almost $1.5bn from a year earlier. India's outstanding balance is almost double that of the next biggest debtor, Indonesia, with $20.6bn.

This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

This suggests that when paired with risk assets like equities, which tend to have less favorable performance during recessionary periods, fixed income can help manage downside risk during downturns.

Fixed-income markets include not only publicly traded securities, such as commercial paper, notes, and bonds, but also non-publicly traded loans. Although they usually attract less attention than equity markets, fixed-income markets are more than three times the size of global equity markets.

The Federal Reserve Board

It is responsible for influencing money, liquidity, and overall credit conditions. Its main tool for implementing monetary policy is its open market operations, which control the purchase and sale of U.S. Treasury securities and federal agency securities.

As a fixed income analyst, your job duties include researching current news and trends the financial markets, evaluating debt and fixed income securities, modeling the financial stability of businesses, and preparing reports about your findings.

A credit research analyst uses things such as income information, credit history, and balance sheets to help determine how risky it is to offer a particular applicant a loan or line of credit.