Fixed Income Equivalent

Fixed income equivalent- It is when a convertible security such as a bond or stock is used in the market place that the turn over would be so low that the investor would know the out come as of there investment a if it was a fixed income investment. Many of these types of investment are preferable during times of low market trading but have no worth during high trading as there interest is normally fixed. When an investor places there money into a security option they already know how much the security may generate as the amount or the interest are fixed. The fixed income equivalent is sometimes referring to as a busted convertible as they mean the same thing.