What is a common characteristic of debt securities?

Debt securities are financial instruments that represent a loan made by an investor to a borrower, typically corporate or governmental. A defining characteristic of these instruments is that they provide fixed income streams. This means that debt securities often pay interest at regular intervals, which can create a predictable stream of income for the investor.

The fixed income aspect is established when the terms of the debt security are set, outlining the interest rate and the schedule for payments. This allows investors to expect a consistent return as opposed to variable or equity securities, which may have fluctuating returns based on company performance and market conditions.

In contrast, the other characteristics mentioned highlight differences between debt securities and other forms of investment. Debt securities do not represent ownership in a company (unlike equity securities), they can have maturities that vary from short-term to long-term and are not inherently immune to market fluctuations, as their prices can still be affected by changes in interest rates and other economic factors.