Fixed Income, Currencies, and Commodities (2024)

FAQs

Fixed Income, Currencies, and Commodities? ›

Fixed income, currency and commodities teams transact in a variety of assets, including interest rate products (such as government bonds, treasury bills and other highly liquid instruments), credit products, mortgages, currencies and commodities.

Fixed income is a class of assets and securities that pay out a set level of cash flows to investors, typically in the form of fixed interest or dividends. Government and corporate bonds are the most common types of fixed-income products.

Securities transactions processed by FICC's Government Securities Division include Treasury bills, bonds, notes, zero-coupon securities, government agency securities and inflation-indexed securities.

More Focus on “The Macro” – Since FICC includes products such as FX, commodities, and government bonds, you'll get more questions about GDP, interest rates, yield curves, inflation, monetary policy, exchange rates, and so on.

The Goldman Sachs FICC and Equities business units are comprised of Equities Products, and Fixed Income, Currency and Commodities. We service institutional clients who manage large portfolios of Australian and New Zealand equities; we work with the financial instruments used to trade debt, currency and commodities.

Fixed income, currency and commodities teams transact in a variety of assets, including interest rate products (such as government bonds, treasury bills and other highly liquid instruments), credit products, mortgages, currencies and commodities.

Equity or “stock” is fractional ownership of a company. Fixed Income includes debt securities such as bonds. Commodities are physical—usually relatively raw—goods that come from the earth such as oil, cotton, gold and soybeans.

Fixed-income markets include not only publicly traded securities, such as commercial paper, notes, and bonds, but also non-publicly traded loans. Although they usually attract less attention than equity markets, fixed-income markets are more than three times the size of global equity markets.

Fixed income trading involves the buying and selling of fixed income securities by fixed income investors. Fixed income securities include bonds such as investment-grade or high-yield corporate bonds, government bonds and inflation-linked bonds.

What falls under fixed income? ›

Fixed-income investing is a lower-risk investment strategy that focuses on generating consistent payments from investments such as bonds, money-market funds and certificates of deposit, or CDs.

Fixed income derivatives include interest rate derivatives and credit derivatives. Often inflation derivatives are also included into this definition. There is a wide range of fixed income derivative products: options, swaps, futures contracts as well as forward contracts.

'Fixed income' is a broad asset class that includes government bonds, municipal bonds, corporate bonds, and asset-backed securities such as mortgage-backed bonds. They're called 'fixed income' because these assets provide a return in the form of fixed periodic payments.

FICC is much broader than Equities and includes “everything other than stocks”: Corporate and government bonds, credit-related derivatives, structured credit products, currencies, commodities, and more. In both areas, banks make money from agency trades and making markets for clients.

The provision of Fixed Income, Credit, Currency, Commodity, Futures and Macroeconomic research and strategy (FICC Research and Strategy) is subject to the MiFID II inducement provisions.

Fixed income derivatives include interest rate derivatives and credit derivatives. Often inflation derivatives are also included into this definition. There is a wide range of fixed income derivative products: options, swaps, futures contracts as well as forward contracts.

'Fixed income' is a broad asset class that includes government bonds, municipal bonds, corporate bonds, and asset-backed securities such as mortgage-backed bonds. They're called 'fixed income' because these assets provide a return in the form of fixed periodic payments.

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.