A Broad Range of Products for Your Portfolio
Schwab offers personalised help, product selection, and low transaction costs for you to pursue your fixed income investing goals, whether you are looking to generate income or diversify your portfolio.
Our proprietary trading platform, Schwab BondSource®, searches more than 200 dealers to help find the right bond for you at the best price available to us, with access to over 36,000 securities1 including:
U.S. Government Securities
If safety of your principal is your primary concern, and you’re willing to accept a comparatively low yet dependable return, Treasury securities (Treasuries) can be an attractive choice.
- Treasury bills (T-bills) – short-term bonds with maturities of no more than one year
- Treasury notes – intermediate- to long-term investments, typically issued in maturities of two, five, and ten years
- Treasury bonds – maturities range from 10 to 30 years
- STRIPS2 (Treasury zero-coupon bonds) – are popular with investors who want to receive a known payment on a specific future date.
Issued by either a government-sponsored enterprise (GSE) or a government-owned corporation, and are debt obligations solely of the issuing agency. Agency bonds is a liquid investment featuring high credit quality.
If you're searching for a potentially higher yield than government bonds, corporate bonds may offer a more aggressive fixed income choice for you. However, corporate bonds can be riskier than other bonds, as returns depend on company profits and financial management and other factors that impact the ability of the issuer to repay its debts.
Mortgage-backed securities (MBS) are one of the few fixed income securities that pay both interest and a portion of principal on a monthly basis, which may make them an attractive investment for investors seeking regular income.
Draw on Valuable Resources
- Dedicated U.S. based Bond Specialists can review your portfolio and implement changes designed to meet your investment objectives.
- Access online research from Ned Davis, as well as rating reports from Moody’s on many fixed income securities.
- Other tools and resources are available to help you make more informed fixed income choices based on your goals including fixed income education and workshops.
Risk Associated with Fixed Income Securities
- Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. For further details, please contact a Schwab investment professional at 0800 917-1039 (in the U.K.) or 0800 56-3821 (in Switzerland).
- In the bond market there is no centralized exchange or quotation service for most fixed income securities.
- Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.