Diversify Your Portfolio
Choose fixed income solutions that work for you.
Fixed income securities are attractive to investors who rely on their investments to provide a stable income stream, reliable returns and also reduce risk exposure. For a well diversified portfolio, Investrade Discount Securities offers access to a variety of fixed income products including a full service bond desk to assist in building your fixed income portfolio.
For more information please contact Investrade's Fixed Income Trading Desk at 1-800-498-7120.
US Treasury Issues
Treasuries are backed by the U.S. Government and are considered low risk. The money paid out for a Treasury bond is considered a loan to the government and there various types available to meet individual investing needs.
Municipal Bonds
Municipals are debt securities issued by a state, municipality, county and various other public entities to raise money. Municipal bonds and bond funds are generally bought for their favorable tax implications.
Zero Coupon Bonds
Zero coupon bonds do not pay interest during the life of the bond with maturity dates usually being long term. Investors buy zero coupon bonds at a deep discount from their face value. At maturity, the investor will receive one lump sum equal to the initial investment plus interest that has accrued.
Preferred Stock
Preferred stock pays a fixed dividend that does not fluctuate and takes precedence over common stock in the event of liquidation. The structures of preferred stock are specific to each corporation.
Structured Investment Products
Structured products are a type of investment designed to facilitate customized risk-return objectives by customizing the product mix to adhere to the investor's risk tolerance.
US Agency Issues
Agencies are securities, usually bonds, issued by a U.S. government-sponsored agency. These offerings are sponsored by the government, but because the agencies are private entities they are not guaranteed by the government.
Corporate Bonds
Corporate bonds often pay higher rates than government or municipal bonds, because of the higher degree of risk. They are taxable, have a term maturity and are traded on a major exchange.
Convertibles
Convertible bonds give the bondholder the right to convert the asset to equity. Reverse Convertible bonds can be converted to cash, debt or shares of equity at the discretion of the issuer at a set date.
Unit Investment Trusts (UIT's)
A UIT is an unmanaged and fixed portfolio of income-producing securities. Capital gains, interest and dividend payments are passed on to shareholders at regular periods.
Certificates of Deposit (CD’s)
CD’s are generally low risk investments with a fixed rate of interest and can be issued in any denomination. Terms range from short to medium term.
Important Disclosures
Clients should take special care in understanding all of the risks involved prior to investing in Fixed Income and Structured Products as they are not suitable for all investors.
Although bonds generally present less short-term risk and volatility than stocks, bonds do entail interest rate risk (as interest rates rise, bond prices usually fall and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments. Additionally, bonds and short-term investments entail greater inflation risk, or the risk that the return on investment will not keep up with increases in the prices of goods and services, than stocks. In this economic environment, please be aware that bond ratings may change and may affect the value of the bond.
Structured products are subject to market, liquidity, interest rate, and volatility risks. Though a structured product can be issued a ticker symbol and be approved for listing on an exchange, an active and liquid trading market may not develop. Limits or caps in the appreciation of the underlying asset can limit upside appreciation while investors are still exposed to downside risk and can lose part or all of their original investment. Returns of principal may not be obtained if the investment is sold prior to maturity, thus an investor may experience loss of principal. Principal protection and payment at maturity is subject to the credit risk of the issuer.
Before purchasing a CD, investors should fully understand all of its terms and carefully read all disclosure statements. For more information about federal deposit insurance, the FDIC offers an online tool, Electronic Deposit Insurance Estimator to estimate your total coverage at any particular bank.
Investrade Discount Securities may act as principal on any fixed income transaction. When acting as principal, Investrade Discount Securities will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you.
All fixed income products are subject to availability. Investrade Discount Securities makes no investment recommendations and does not provide financial, tax or legal advice. You should seek the advice of your independent financial advisor or tax advisor before making any investment and consider your overall financial status, tax status and investment objectives.