We are now entering the tropical jungle of capital markets. Fixed-income or debt markets are the largest single class of markets. However, the variety of products they offer makes it difficult to regard them as a single entity. “Fixed-income,” by the way, is a misnomer that remains with us from earlier and simpler times, when all debt securities carried a fixed rate of interest. The fixed-income market, as discussed within this book, covers all contractual arrangements, including public securities and private loans, that relate directly and tangentially to borrowing money and then repaying it over time. The tangential contracts are largely derivative deals like swaps, options, and credit guarantees.