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This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of Robeco Institutional Asset Management US, Inc. (RIAM US) and its participating affiliates, which may include information on strategies not available in the US. US Securities and Exchange Commission (SEC) regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as access persons or associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of RIAM, a US SEC registered investment adviser. RIAM US’s SEC registration should not be viewed as an endorsement or approval of RIAM US by the SEC. RIAM US maintains its offices at 230 Park Avenue, New York, NY 10169.
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Fixed income
Coupon rate
The coupon rate is the annual interest rate paid by a bond issuer to the bondholder, expressed as a percentage of the bond's face value.
It determines the fixed income an investor receives periodically – typically semiannually or annually – until the bond matures. The coupon rate is set when the bond is issued and remains constant throughout the bond's life, reflecting the prevailing market interest rates and the issuer's credit risk at the time of issuance.
For example, if you have a 10-year, EUR 2,000 bond with a coupon rate of 10 percent, you will receive EUR 200 per year for 10 years, regardless of fluctuations in the bond's market price. As market interest rates change over time, they may move higher or lower than the bond's coupon rate, affecting the bond's market value: a rise in market interest rates typically decreases the bond's value, while a decline increases it.
