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Give two fixed-income security features that would have different attractiveness to different kinds of investors (e.g.,...

Give two fixed-income security features that would have different attractiveness to different kinds of investors (e.g., private individual versus institutional investor).

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Answer #1

Stability of principal- It offers capital preservation.

Private individual like it as it offers money security. Institutional investors like it as it help eliminate concerns about portfolio fluctuations over time and the potential of not meeting the objective of the investment account due to market volatility.

Steady income stream

Private individual likes it as it offers money at fixed intervals. Institutional investors like it as it help them meet redemption pressure.

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