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Should you invest in... fixed income.

FIXED income investing is not for thrill-seekers.

As the name suggests, you invest a fixed sum, and you will receive a fixed return at a fixed point in time (once a year, or once a quarter), over a fixed term.

However, in these volatile times, a guaranteed return is welcome news, and interest in fixed income has been soaring.

The investment works as a transaction between a borrower (the issuer of debt) and a lender (the investor or investment group).

Governments are the most common type of borrower, issuing government bonds, sovereign bonds and municipal bonds over three, five or 10-year periods.

Amid ongoing macro-economic volatility, last year the global fixed income markets performed well.

However, the value of the return can drop as inflation rates rise, leading analysts to predict that 2013 could see the fixed income market implode as interest returns to equities.
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Title Annotation:Features
Publication:Huddersfield Daily Examiner (Huddersfield, England)
Date:Jan 31, 2013
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