flows from their investments. What are the new or hidden risks the market has overlooked and to what extent? Is inflation expected to worsen or improve? Does the real interest rate built into the yield make sense? Is the real interest rate in line with the expected GDP growth rate (in case of treasury bonds) or earnings growth rate (in case of corporate bonds)? Where do we stand in the business cycle of the particular company, or economic cycle of the particular country? Is there any change expected in the basic real interest rate in the near future? Will the prevailing monetary and economic conditions force any monetary easing or tightening? Are the financial authorities in the country pro-active or re-active to the forces of inflation and economic conditions? The approaches for analysing fixed income products include the fundamental approach, the technical approach, and the relative value approach. Further reading Colin, Dr Andrew. Fixed Income Attribution. London, Wiley & Sons. January 2005. See also Bond convexity Bond duration Bond option Callable bond Credit risk Discount rate Floating interest rate Hedging Interest Interest rate risk Mortgage loan Preferred stock Prepayment risk Swaps Yield curve Andrew Kalotay Overbond Securities analysts: References External links Fixed Income Analysts Society