Fixed income can provide investors with a stable, reliable income stream for a modest level of risk. If you’re staring down the barrel of sliding term deposit income, it might be a great solution that’s worth a look. For most private investors, a mix of New Zealand government or local authority bonds, combined with investment-grade corporate bonds is the optimum approach. Subordinated and hybrid securities can be a useful complement, but make sure you understand the nature of these and keep your weightings in check. For smaller investors, diversified fixed income or bond funds might be a very useful option.