Fixed Income Trading

Even though many holders of fixed income instruments will buy and hold the security to maturity, fixed income can be traded in a way similar to trading equities. This corner examines various fixed income trading strategies and analysis.

  • Fixed Income Trading: covers multiple theories and strategies to trading fixed income.

    • Carry Trade: a simple passive strategy that simply collects the income from fixed income interest payments and may involve risk premium.
    • Rate Forecasting: a trading strategy that is based on a forecast of where various interest rates move.
    • Relative Value Analysis: a strategy that tries to capitalize on differences in the relative value of two or more instruments.
  • Fixed Income Portfolios: