The Markets May 20, 2008

Investors Need to Fix Fixed Income Strategies

Many consumers have misconceptions about the use of fixed-income investments, according to a survey from E*TRADE Securities LLC.
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According to an E*TRADE press release, while most (65%) survey respondents agree fixed income is an important part of a well-diversified portfolio, those who do not hold fixed-income investments say:

  • Fixed income is more important during times of volatility (58%);
  • Fixed income is an investment tool only for retired people (45%);
  • Buying and selling fixed income is a complex process (36%).

“Fixed income is indeed a key component of most well-diversified portfolios, yet we continue to see hesitation and misperceptions perpetuated among investors, signaling a need for better education, tools and access to fixed-income securities and information,” said Michael Curcio, Managing Director, E*TRADE Securities LLC, in the release.

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The survey also found that the majority (52%) of fixed-income investors prefer commission-based agency pricing similar to equity trade pricing.

As a result of its findings, E*TRADE said it has upgraded its Bond Center to deliver more education and transparent pricing.

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