Write a replay for each Students post in attach file
the topic is Fixed income analysis
in your replay you have to argue their discussion and add information to it
Post #1:
This article describes the features, characteristics, and the elements of fixed income analysis.
Fixed income analysis is the analytical framework used to evaluate and assess fixed income
securities for investment purposes. Fixed income securities could be either government or
corporate bonds. Government securities include US Treasuries. Corporate securities would be
bonds issued by public corporations. Elements of fixed income analysis are credit and risk
analysis and bond valuation. Overall, Fixed income analysis plays an important role in the
trading and pricing of such instruments in the market.
https://education.howthemarketworks.com/glossary/fixed-income-analysis/
Post #2:
Fixed Income Analysis – Bonds Market
Fixed income is an investment that gives the investors a fixed amount of interest up to the
maturity date of the security. Corporate and government bonds are some of the common fixed
income products where a fixed interest is paid, and the investors are finally given the
principal
amount on maturity. The bonds market is a key avenue for trading securities between
companies and investors. However, it is often faced with inconsistencies regarding interest
rates due to inflation. Conservative investors mostly invest in government bonds since there
is a guarantee that they will receive interests in the future. High demand in the bonds market
pushes the prices upward but lowers the fixed interest rates received by investors. The
inconsistencies in the bonds market affect the fixed long term interest as they relatively fall
compared to the short term. However, inversions and downturns affect the fixed income
received by investors. Short term investments yield high interests while the long term ones
yield low gains. Inflation has been affecting the bonds market by increasing their prices but
consequently lowers the interest rates (Grocer, & Phillips, 1).
Besides, the increase in bond prices and other securities locks away some investors who
cannot afford. Fixed income requires a technical decision from investors by selecting a viable
investment option. Corporate, and government bonds together with shares and other
securities in the market are affected by inflation; hence, an investor must make a sound
financial decision regarding where to invest. Fixed income analysis helps investors to
determine the investments with the highest interest rates. The interest rate of return is key to
deciding which securities will earn the investors high incomes in the future.
*Reference
Grocer, S., & Phillips, M. (2019). The Bond Market is trying to tell us something.
https://www.nytimes.com/2019/05/30/business/bond-yield-curve-recession.html (2019):
pp. 1
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