What do fixed income researchers do?
Fixed income research analysts are responsible for providing insights and recommendations on bonds, credit markets, interest rates, and macroeconomic trends. They help investors, traders, and portfolio managers make informed decisions and generate returns.
A fixed income trader is a financial professional who executes security trades on behalf of institutional and retail clients based on equity research relating to fixed income investments. They generally work for broker-dealers and banks.
Fixed-income analysts analyze debt or fixed-income securities to make recommendations regarding possible investment strategies. They stay abreast of trends and news and issues, including a competitive position and an organization's financial stability to identify any potential risk.
Pros: The work is arguably more interesting than equity research, at least if you cover high-yield or distressed issuances. It can be a nice “second step” after a role like corporate banking, capital markets, or a credit rating agency if you want to improve your profile for buy-side roles.
1 Role of a fixed income specialist
They can develop and implement strategies for buying and selling securities or hedging investments. Furthermore, they can evaluate the performance, quality, and valuation of fixed income securities and portfolios.
Fixed income serves four key roles in a portfolio: Diversification from equities, capital preservation, income and inflation protection. Many investors would benefit from evaluating whether their bond holdings are meeting these goals.
Careers in fixed income can be lucrative, challenging, and rewarding. An added benefit is that the fixed income industry is likely to grow as the population ages. Since this field of finance is interwoven into many other areas of finance, a career in fixed income also has the potential of many different career paths.
Becoming a fixed income specialist requires a multi-pronged approach: education in finance, economics, or accounting lays the groundwork, followed by industry experience through roles like analyst or trader. This immersion helps you understand securities, analyze markets, and navigate regulations.
$181K (Median Total Pay)
The estimated total pay range for a Fixed Income Analyst at Bloomberg is $141K–$234K per year, which includes base salary and additional pay. The average Fixed Income Analyst base salary at Bloomberg is $139K per year.
The average Fixed Income Analyst salary in the United States is $84,120 as of March 26, 2024, but the range typically falls between $59,656 and $116,705.
How do I prepare for a fixed income analyst interview?
- What's the main role of a fixed income trader?
- What does it mean to have a flat price for a bond? A clean price?
- What's the difference between a loan and a bond?
- What are benchmark treasuries?
- What's relative value analysis?
- Define desired price.
- Define desired yield.
- Define convexity.
Credit/fixed income research looks at the likelihood that an issuer will be able to meet financial obligations, including debt payments. They often review the issuer's financial history and determine whether market conditions will be conducive to repayment.
Fixed Income Analyst Salary in California. $71,600 is the 25th percentile. Salaries below this are outliers. $129,300 is the 75th percentile.
Treasury bonds and bills, municipal bonds, corporate bonds, and certificates of deposit (CDs) are all examples of fixed-income products. Bonds trade over-the-counter (OTC) on the bond market and secondary market.
Fixed-income investing can provide regular income through dividends or interest, which helps mitigate stock-market risk. Investors who hold fixed income generate a return even when the stock market is down.
Fixed-income analysts analyze debt or fixed-income securities to make recommendations regarding possible investment strategies. They stay abreast of trends and news and issues, including a competitive position and an organization's financial stability to identify any potential risk.
Fixed-income investments have regular cash flows, which is beneficial for the purposes of funding future liabilities. For liability-based fixed-income mandates, portfolio construction follows two main approaches—cash flow matching and duration matching—to match fixed-income assets with future liabilities.
“That's why fixed income is a great way to allocate capital, because it provides both income and return with stability,” Kyle says. Additionally, investing in fixed income can help balance out market volatility.
The estimated total pay range for a Fixed Income Trader at Fidelity Investments is $153K–$280K per year, which includes base salary and additional pay. The average Fixed Income Trader base salary at Fidelity Investments is $136K per year.
Filter your search results by job function, title, or location. Found 48 of 0 job openings. $45K - $92K (Glassdoor Est.)
Is fixed income high risk?
Fixed-income securities from the U.S. Treasury are backed by the full faith and credit of the United States government, making them very low-risk but relatively low-return investments.
Get feedback on your pay or offer
Create an anonymous post and get feedback on your pay from other professionals. The estimated total pay range for a Fixed Income Trader at JP Morgan Securities is $223K–$406K per year, which includes base salary and additional pay.
Equity research analysts research public companies and come up with recommendations for investors about whether to buy, sell, or continue holding certain stock. Both brokerage firms on the sell-side as well as funds on the buy-side both employ equity research analysts.
CFA Level 1 Fixed Income is considered one of the more difficult topics on the exam, and for most candidates, it is also one of the least familiar. Fixed income securities are typically more abstract than equity investments.
Based on these numbers, if you've passed Level I, the job roles most likely available to you are intern, accountant or assistant accounting manager, investment administrator, fund analyst, investment product analyst, and junior equity research analyst (which is often the first step toward getting into asset management ...
