Debt, not ownership
A bond or similar debt instrument represents a contractual obligation from an issuer to make specified payments, subject to the instrument terms.
That is economically different from owning shares in the issuer.
Cash flows
Some instruments pay periodic interest, while others are issued below the amount repaid at maturity.
The timing and certainty of payments depend on the instrument and the issuer’s ability to pay.
Fixed income still has risk
Prices can change before maturity, issuers can default and inflation can reduce purchasing power.
The word fixed usually refers to the structure of payments, not a risk-free outcome.
General information only. Investment products can lose value, and terms, fees and regulation can change.