Recruiter's Glossary

Examples: Real Estate • Correlation • Jensen's Alpha

Fixed Income

Term from Investment Management industry explained for recruiters

Fixed Income refers to investments that pay steady, regular income through interest payments, like bonds and treasury securities. It's a key area in investment management where professionals help clients earn reliable returns with generally lower risk than stocks. Think of it like being a landlord who collects regular rent payments, except instead of real estate, these professionals manage bonds and similar investments. When you see this term on a resume, it usually means the person has experience managing these types of investments for clients, analyzing risks, and making decisions about which bonds or similar investments to buy or sell.

Examples in Resumes

Managed $500M Fixed Income portfolio for institutional clients

Developed Fixed Income investment strategies for pension funds

Analyzed Fixed Income securities and Bond opportunities in global markets

Led team of Fixed Income traders during market volatility

Typical job title: "Fixed Income Analysts"

Also try searching for:

Fixed Income Analyst Bond Manager Fixed Income Portfolio Manager Fixed Income Trader Bond Trader Fixed Income Strategist Investment Manager Fixed Income Research Analyst

Where to Find Fixed Income Analysts

Professional Associations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How do you approach building a fixed income portfolio in a rising interest rate environment?

Expected Answer: A senior professional should explain how they would adjust investment strategy to protect against falling bond prices, such as focusing on shorter-term bonds, floating rate securities, and diversifying across different types of fixed income investments.

Q: How do you manage risk in a fixed income portfolio?

Expected Answer: Should discuss diversification strategies, credit quality assessment, duration management, and how they monitor and adjust portfolios based on market conditions and client needs.

Mid Level Questions

Q: What factors do you consider when analyzing a corporate bond?

Expected Answer: Should mention company financial health, credit ratings, industry conditions, interest rate environment, and how these factors affect bond prices and risks.

Q: How do you evaluate the credit quality of a bond issuer?

Expected Answer: Should explain looking at financial statements, understanding the business model, analyzing cash flows, and considering external factors that could affect the issuer's ability to repay.

Junior Level Questions

Q: Can you explain what happens to bond prices when interest rates change?

Expected Answer: Should explain the basic inverse relationship: when interest rates go up, bond prices go down, and vice versa, and why this happens.

Q: What's the difference between government and corporate bonds?

Expected Answer: Should explain that government bonds are generally safer but offer lower returns, while corporate bonds typically offer higher returns but carry more risk.