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Three-month bills, regarded as the least risky fixed-income security, returned 4.4percentt last year, according to Merrill Lynch & Company indexes.
"The issue that's overhanging the industry is what happens to the consumer," said Steven J. Bocamazo, vice president for fixed-income security research at Loomis, Sayles & Company in Boston.
JANET -- A bond, also known as a fixed-income security, is a debt obligation issued by a company, the U.S. government, a state or local municipality, or a government agency.
It's a long way from being a fixed-income security.
Once floated, a fixed-income security will, apart from responding to interest rate movements, vary in price almost entirely in accordance with rating changes.
In the face of all this financial uncertainty, investors became much more risk averse, and looked to unwind positions in potentially hazardous MBS's and any fixed-income security not paying a proper risk premium for the perceived risk level.
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Both those situations frighten investors in fixed-income securities.
Such conditions tend to favor fixed-income securities.
There are four million fixed-income securities and about 10,000 listed stocks.
Convertible bonds are fixed-income securities that can be exchanged for shares in the issuing company.
Many are eager to invest in stocks and do not want to consider fixed-income securities.
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