Fixed Income

Income generation for your portfolio.

When an investor buys equities, he is essentially buying part-ownership of a company. In contrast, a traditional fixed income security is essentially an IOU – an obligation stating that the borrower will pay the lender interest payments at regular intervals based on a fixed rate as well as refund the lender his or her principal on the maturity date of the instrument.

Investors buy fixed income instruments for several reasons. One major reason is for the income they generate, be it to fund retirement, education, or any other cash flow need. A second reason is for the safety of capital they provide. Fixed income instruments carry, depending on their credit quality, a greater degree of principal protection and guarantee of investment returns than most other investments. Fixed income instruments are also bought for their liquidity, as the fixed income market in Canada has trading volumes that are 30 times greater than equity markets. A fixed income security, therefore, can be purchased or converted into cash relatively easily.

There is considerable choice afforded to investors when it comes to fixed income investing. The Burak Hannon Brojde Group has access to a wide variety of fixed income products – including GICS, government and corporate issues, and foreign currency denominated debt – and can help design fixed income solutions to meet the specific income and investing needs of our corporate and private clients.