1. Bonds: Bonds are debt securities issued by governments, municipalities, or corporations. They have a fixed interest rate (coupon rate) and a predetermined maturity date. Bonds are considered relatively low-risk investments, especially government bonds, as they are backed by the issuing entity’s ability to repay the debt.
2. Treasury Securities: These are bonds issued by the government, specifically the U.S. Department of the Treasury. They include Treasury bills (T-bills), Treasury notes (T-notes), and Treasury bonds (T-bonds). Treasury securities are generally considered to be very low-risk investments since they are backed by the full faith and credit of the U.S. government.
3. Municipal Bonds: Municipal bonds, or munis, are issued by state and local governments or their agencies. These bonds are used to fund public infrastructure projects such as schools, highways, or water systems. The interest income generated from municipal bonds is often exempt from federal taxes and may also be exempt from state and local taxes, depending on the issuer and the investor’s residence.
4. Corporate Bonds: Corporate bonds are debt securities issued by corporations to raise capital for various purposes, such as expansion or refinancing existing debt. The interest rates on corporate bonds are typically higher than those on government bonds to compensate investors for the increased risk associated with corporate debt.
5. Certificates of Deposit (CDs): CDs are time deposits offered by banks and other financial institutions. They have a fixed term (ranging from a few months to several years) and offer a fixed interest rate. CDs are considered relatively low-risk investments as they are insured by the Federal Deposit Insurance Corporation (FDIC) in the United States.
6. Preferred Stock: While not strictly a fixed income security, preferred stock has characteristics of both stocks and bonds. Preferred stockholders receive a fixed dividend payment, similar to interest on bonds, before common stockholders. Preferred stockholders have a higher claim on the company’s assets and earnings compared to common stockholders.

Due to their consistent income stream and set maturity date, fixed income assets are typically seen as more cautious investments than equities (stocks). They still come with concerns, though, like interest rate risk, credit risk (the danger of default), and inflation risk (the risk that inflation may reduce the fixed income payments’ buying value). Before making an investment, investors should carefully consider their investment objectives, risk tolerance, and the unique features of each fixed income instrument.