Fixed income securities, or bonds, are issued by companies and governments as a way of raising money. They’re basically an debt instrument – designed to provide a regular stream of income (which is normally a fixed amount) over a specified period of time.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Key Takeaways
01.
Stable income
Bonds can provide a predictable stream of income through regular coupon payments. Across various segments, from government to corporate debt, yields have become more attractive offering meaningful income potential.
02.
Capital preservation
Bonds may help investors preserve their money, (i.e.savings) while potentially providing more yield than idle cash.
03.
Diversification
Fixed income investments can bring balance and stability to portfolios. They offer a reliable source of income and can help cushion portfolios through different market conditions
Risk: Diversification and asset allocation may not fully protect you from market risk.
Why BlackRock for fixed income?
Deep expertise
400+ specialists covering every sector of the bond market1.
Broad range of strategies
Across different maturities, credit qualities, sectors and geographic regions.
Rely on our scale
Our goal is to provide you with the quality and value you deserve and expect.
1 BlackRock, 31 August 2025
Fixed income investing solutions
Actively managed funds are overseen by a fund manager who selects and manages investments, pursuing attractive opportunities while seeking above-benchmark returns. With experts across the world’s bond markets, BlackRock combines global reach with local expertise to identify compelling opportunities. In addition, BlackRock offers a wide range of investment solutions across mutual funds, index funds, and ETFs — providing investors with flexibility to meet different objectives and preferences.
Unconstrained fixed income strategies are benchmark free. This means they can navigate across the breadth of the fixed income universe.
What are the risks associated with fixed income?
There are four major risks associated with fixed income:
- Interest rate riskWhen interest rates rise, bond prices fall, meaning the bonds you hold lose value. Interest rate movements are the major cause of price volatility in bond markets.
- Inflation riskInflation is another source of risk for bond investors. Bonds provide a fixed amount of income at regular intervals. But if the rate of inflation outpaces this fixed amount of income, the investor loses purchasing power.
- Credit riskIf you invest in corporate bonds, you take on credit risk in addition to interest rate risk. Credit risk (also known as business risk or financial risk) is the possibility that an issuer could default on its debt obligation. If this happens, the investor may not receive the full value of their principal investment.
- Liquidity riskLiquidity risk is the chance that an investor might want to sell a fixed income asset, but they’re unable to find a buyer.
You could manage these risks by diversifying investments within your fixed income portfolio.
Risk: While the investment approach described herein seeks to control risk, risk cannot be eliminated.
Understanding fixed income strategies
A fixed income portfolio is a collection of investments—such as government or corporate bonds —designed to deliver regular income and preserve capital. Its main goal is to generate steady income, reduce overall portfolio risk, and help protect your initial investment.
Discover our fixed income funds
The Bid Investment Podcast
The Bid breaks down what’s happening in the world of investing and explores the forces changing the economy and finance. From stock market outlooks and megatrends to geopolitics and technology, BlackRock speaks to thought leaders and industry experts from around the globe about the biggest trends moving markets.
