Do All Debt Securities Fall Under Fixed-Income? Does Fixed-Income Only Encompass Bonds?

J.P. Morghan's picture
Rank: Monkey | 36

Hey guys, basically the title.

I'm trying to map out all the major kinds of financial securities to learn/know about to increase my financial knowledge. ie. I have "Financial Securities" split into "Debt Securities", "Equity Securities", "Derivative Securities", and "Hybrid Securities".

In trying to further break down the Debt Securities section, I can't seem to find any type of security that doesn't fall under "Fixed Income".

Speaking of FI, I only have it split down into "Bonds" - is there something I'm missing? But speaking of Bonds I do have that split into ABS (which further includes things like MBS, etc etc), Corporate Bonds & Government Bonds.

Comments (10)

Jul 16, 2018

Why is derivative securities it's own section? You either have equity, ficc, or a hybrid like an equity linked note. Within each of those categories, you have derivatives

Within FI you have tons of different products. High yield, IG, treasuries, convertibles, securitized products, etc..

Jul 16, 2018

You're right, I wasn't too sure about doing that, but according to Wikipedia "derivatives are one of the three main categories of financial instruments, the other two being equity (i.e. shares) and debt (i.e. bonds)." On Investopedia though its Debt, Equity & Hybrid (things like convertibles).

You mentioned high yield [bonds], investment grade [bonds], treasuries - I'd say these all fall under FI > Bonds. As for securitized products though and I think that's another category I could add to FI instead of just having Bonds to encompass things like CDO's CMO's CBO's etc., so thanks.

Jul 16, 2018

About the original question though, are there any debt securities that don't fall under "Fixed Income" (which encompasses securitized products and all kinds of Bonds)?

Jul 16, 2018

The derivative is the equation of the slope of the tangent line at any X value on the graph?

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Jul 17, 2018

You're thinking about duration ;)

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Jul 16, 2018

Huh?

Jul 30, 2018
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