what does it mean to default on a fixed income security 
default is the failure to make required interest or principal repayments on a debt whether that debt is a loan or a security individuals businesses and even countries can default on their debt obligations the bottom linea fixed income security is an investment that provides a steady interest income stream for a certain period types include government bonds corporate bonds and certificates of deposit there are also mutual funds and etfs which hold a large number of bonds in one fund allowing investors to easily diversify their fixed income investments fixed income securities are rated by credit agencies that assess the default risk for investors these investments typically have a lower rate of return than stocks 