Week 7: Fixed Income Investing
Fixed Income Investing – Video Webinar – Fall 2021
Video Presentation By Peter Kote , Don Vivrette & Kurt Beimfohr
A fixed income security is an investment that pays regular income in the form of a coupon payment, interest payment or preferred dividend. An equity investor is an owner; a fixed income investor is a lender. At one time, the fixed income area was considered an excellent choice for risk-averse investors seeking a stable source of income payments at predictable intervals. It was considered low risk although it meant relatively lower returns; today the return is so low that it is very difficult for one to live off Certificate of Deposits (CD) or Treasuries.
Other than CDs, this is not an area for the less knowledgeable consumer. Michael Lewis, Liar’s Poker, spoke eloquently on how Wall Street manipulates and sells Fixed Income Investments. The movie Rounders (about the world of poker) delivers a life lesson not unlike the bond markets. “If you sit down at the table and within the first half hour can’t identify the fish, then you are the fish.” We are paraphrasing but you get the point. Don’t be the fish.