What are the fixed income derivatives?

Answer by  shandilyan (180)

A fixed income derivative is something that is derived from something else. However, some financial derivatives are quite complex. The simplest form is "stripping" coupons from a bond to create the strips (interest only) and a zero coupon bond (principal only). More complex structures involve taking similar individual mortgages and creating a "pool" so investors can buy large blocks.

Answer by  Hasan72 (572)

Fixed Income Derivatives are traded in a unique market structure which refers to s "stripping" coupons from a bond to create the strips and a zero coupon bond.