Financial Product Knowledge

Financial market provides a public place for participants to trade fairly. It allows people to invest their money or acquire capital or offset risk. Typical financial markets are money market, fixed income market, interest rate market, foreign exchange market, equity market, commodity market and credit market.

Fixed income products are type of investment that typically generates predictable payments in future. They consist of fixed income securities (e.g., bonds) and fixed income derivatives (e.g., bond futures). Fixed income instruments bear interest rate risk that is an important part of market risk.

Fixed income and interest rate markets mainly consists of bonds, notes, debentures, certificates, mortgages, money market funds and interest rate derivatives.

Reference