Fixed Income

Definition ∞ Fixed income refers to investments that provide a regular return stream, typically through interest or dividend payments. These financial products, such as bonds, certificates of deposit, and preferred stocks, generally offer predictable cash flows over a defined period. Investors often use fixed income for capital preservation and portfolio stability. Their value is sensitive to interest rate changes and credit risk.
Context ∞ The integration of fixed income concepts into decentralized finance DeFi is a developing area, with protocols exploring tokenized bonds and yield-bearing stablecoin products. Traditional financial news often compares the risk-adjusted returns of crypto-native fixed income options with conventional offerings. This convergence presents both opportunities for yield and novel risk considerations for participants.