Fixed interest securities, including bonds, represent loans to borrowers, which could include governments, banks and companies. In return for the loan, the borrower generally pays a pre-determined rate of interest for an agreed term.
Interest bearing debt securities (bonds) where the return is fixed when held to maturity. Corporations, governments and semi-government authorities issue fixed interest investments or “bonds”. They typically offer higher yields (returns) than cash securities but their value can fluctuate.
Normally for terms of one year or more, fixed interest investments (sometimes referred to as 'securities') include government and semi-government bonds, debentures, mortgage trusts and fixed terms deposits. They generally provide a regular fixed income with capital repaid at the end of a fixed term.