Capital-guaranteed fixed-income financial products refer to products in which the bank pays the full principal and fixed income to investors in accordance with the matters agreed in the contract. Investors who buy this type of product receive fixed income upon maturity, and all investment risks are borne by the bank.

However, investors do not receive fixed income completely unconditionally. Regulators stipulate that banks cannot unconditionally promise fixed income to prevent banks from soliciting deposits at high interest rates.

Among fixed income products, fixed income securities account for a large proportion. There are many types of fixed income securities. my country’s existing fixed income securities can be roughly divided into four categories:

①Treasury bonds, central bank bills, financial bonds and guaranteed corporate bonds. The income is the bond holding period. Interest income, price increases caused by falling market interest rates, and profits derived from strong liquidity.

②Unsecured corporate bonds, including short-term financing bonds and ordinary unsecured corporate bonds, income comes from interest income during the corporate bond holding period, price increases caused by the decline in market interest rates and the reduction in credit spreads.

③Hybrid financing securities, including convertible bonds and detached convertible bonds, income comes from price increases caused by changes in the price of the underlying securities and price fluctuations of the underlying securities for dividend distribution.

④Structured products, including credit securitization, special asset management plans and non-performing loan securitization, have income from holding period interest income and price increases caused by falling market interest rates.

Extended information:

As an investment tool, fixed income products are not completely risk-free. The main risks are as follows:

1. Policy risk

Including risks arising from market price fluctuations due to changes in national macro policies (such as monetary policy, fiscal policy, industry policy, regional development policy, etc.).

The economic cycle risk caused by policy changes means that with the cyclical changes in economic operation, the market's income level also changes cyclically, which directly affects the income of fixed income products.

2. Credit risk

Mainly refers to the default risk of the issuing institution. For example, if the debtor does not manage well and the assets cannot cover the debt, the creditor may lose most of its investment. However, the credit risk of fixed-income securities such as treasury bonds, central bank bills, financial bonds and guaranteed corporate bonds can be ignored.

Unsecured corporate bonds, credit securitization, special asset management plans and non-performing loan securitization will all have more or less credit risks depending on the issuing entity.

3. Interest rate risk

The yield of fixed income products is generally slightly higher than the interest rate of time deposits in the same period, and this is used to attract investors. However, when prices rise sharply, the monetary authorities will raise interest rates at any time to solve the problem of interest rate inversion, and the prices of fixed-income securities will also fall as a result.

4. Liquidity risk

Fixed income products usually promise to guarantee the principal and income upon maturity. Some products allow investors to terminate early at a specific time during the holding period. In addition, In addition, if investors are in urgent need of money, they generally have to pay varying amounts of liquidated damages.

Therefore, before making an investment in a product, investors must first consider whether the investment period and amount of the product meet their current or future liquidity requirements.

Secondly, due consideration should be given to whether the financial product itself stipulates the customer's early termination rights, whether the product allows for pledged loans, and other supplementary regulations on liquidity.

Baidu Encyclopedia-Fixed Income Products