Investors who invest in fixed-income securities typically desire a constant and secure return on their investment. For example, a retired investor might wish to receive a regular, dependable payment on which to live but not wish to have their overall capital consumed.

Investors choose to include fixed-income securities to achieve a regular, or 'fixed', income stream and diversification of their overall investment portfolio. Fixed income investment products are generally considered an important part of a well-diversified portfolio because these investments pay interest at pre-specified times and amounts. Fixed income investments are generally considered a relatively conservative investment as the money invested is typically backed by a corporation, municipality, government or government agency.