Fixed Income & Credit

Fixed income and credit are two important concepts in finance, particularly related to investments and lending.

Fixed income refers to investments that provide regular, set interest payments and return the principal at maturity. Common examples include government and corporate bonds.

Credit involves lending money with the expectation of repayment, usually with interest. It can pertain to various forms of borrowing, such as loans, credit cards, and lines of credit. The creditworthiness of a borrower, assessed through credit ratings or scores, determines the terms and interest rates of the credit. Strong credit indicates a lower risk for lenders, while weak credit suggests higher risk and typically results in higher interest rates.

Both fixed income and credit are essential for the functioning of financial markets, providing opportunities for income generation and liquidity, and enabling businesses and individuals to access necessary funds.

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