Navigating the Fixed Income, Bonds & CDs page on Fidelity.com - Fidelity (2024)

FAQs

How to look at bonds in Fidelity? ›

Quickly search for bonds by selecting the bond product (e.g. Treasury or Municipal) under Find Bonds & CDs in the middle of the page. Select the Search by Yields hyperlink to scan yields across the yield curves of various bond types at various maturities, as well as a quick search of Fidelity's bond inventory.

To determine the value of a fixed income security, the analyst must estimate the expected cash flows from the investment and the appropriate required yield. The cash flows consist of: periodic interest (known as coupon) payments prior to the maturity date, and. the repayment of the principal at par value upon maturity.

You must enter the security's CUSIP on the Trade Fixed Income page. If you know the CUSIP for the security you want to trade, enter it in the CUSIP field. If you want to search for securities, click Search Inventory. When you select the security you want to trade, the CUSIP is automatically entered for you.

Fixed-income securities typically provide lower returns than stocks and other types of investments, making it difficult to grow wealth over time. Additionally, fixed-income investments are subject to interest rate risk.

For redemption or other information about U.S. savings bonds, visit the U.S. Treasury Department's web page, www.treasurydirect.gov, or contact their office directly by calling (844) 284-2676 (toll-free).

Key Takeaways. Fixed-Income securities provide investors with a stream of fixed periodic interest payments and the eventual return of principal at maturity. Bonds are the most common type of fixed-income security. Different bonds have different term lengths depending on how long the issuer wishes to borrow for.

FINRA provides comprehensive, real-time access to fixed income security and trade information compiled from multiple sources, including but not limited to TRACE, Refinitiv, S&P, Moody's, and Black Knight Technologies.

However, CDs and Treasuries are fixed income investments and subject to similar risks as other fixed income investments. For example, if interest rates rise, the price of a CD or Treasury will fall and if you need the investment prior to maturity and have to sell it, you may lose money.

What is fixed income for dummies? ›

Fixed income broadly refers to those types of investment security that pay investors fixed interest or dividend payments until their maturity date. At maturity, investors are repaid the principal amount they had invested.

For U.S. Treasury purchases traded with a Fidelity representative, a flat charge of $19.95 per trade applies. A $250 maximum applies to all trades, reduced to a $50 maximum for bonds maturing in one year or less.

Just because fixed income funds usually are less risky options doesn't mean there is no risk involved. As with stocks, your fixed income investment could be affected by external factors such as market conditions, inflation, or interest rates.

Fixed income risks occur due to the unpredictability of the market. Risks can impact the market value and cash flows from the security. The major risks include interest rate, reinvestment, call/prepayment, credit, inflation, liquidity, exchange rate, volatility, political, event, and sector risks.

Examples of fixed-income securities include bonds, treasury bills, Guaranteed Investment Certificates (GICs), mortgages or preferred shares, all of which represent a loan by the investor to the issuer.

Search for matured savings bonds and missing interest using Treasury Hunt, an online tool from TreasuryDirect.

How much fidelity bond coverage is required? At the beginning of each plan year, the coverage amount of the bond must be at least 10 percent of the amount of funds handled. The minimum bond amount is $1,000 and, in most cases, is not required to be more than $500,000.

If the bond is in TreasuryDirect, look in your account there. If the bond is paper, use the Savings Bond Calculator. Note: For bonds less than 5 years old, values shown in TreasuryDirect and the Calculator don't include the last 3 months of interest.

Most brokers today allow for easy access to the bond market, either directly or via bond mutual funds or ETFs. Depending on your investment goals, tax exposure, risk tolerance, and time horizon, different types of bonds will be most appropriate for you.