Factor Investing Part 4 - Term and Credit Premiums in Fixed Income
The often-forgotten, but nevertheless critical asset class for many investors is fixed income which are broadly referred to as bonds. Stock holders are owners of the company and are entitled to a share of dividends that are paid out if the company issues them or if the company itself is ultimately liquidated. Bond holders are lenders of capital to the company or, in the case of government bonds, the government.