Broad Range of Products for Your Portfolio
Schwab offers the personalized help, product selection, and low online fees 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 multiple sources and dealers to help find the right bond for you at the best price available to us, with access to thousands of securities 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
These securities are issued either by a government-sponsored enterprise (GSE) or a government-owned corporation, and are debt obligations solely of the issuing agency. Agency bonds are traditionally 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, 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. Although complex, mortgage-backed securities can provide diversification in suitable portfolios.
Draw on Valuable Resources
Access online research from third-parties in addition to 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.