Understanding The Different Types Of U.S. Treasury Securities – How It Works

You’ve probably heard about U.S. Treasury securities before but have no idea up to today what they are and how they can benefit you.  U.S. Treasury securities are instruments of debt – more specifically, debts of the U.S. Federal Government.  So, the simple truth is, if you buy any Treasury security, you are in essence lending money to the government for a specific period of time.  They come in different forms.  You have Treasury Bills, Treasury Notes, Treasury Bonds, Floating Rate Notes (FRNs), and Treasury Inflation Protected Securities (TIPS).  Collectively, investors and finance experts call these securities as “Treasuries.”

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How Bonds Rating Are Determined?

If you were a bond investor, you’d want an assurance that the bond issuer would pay you back later.  The bond issuer should be able to pay the principal and interests in total and on schedule. As an investor, this would be your primary consideration […]

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The Pros And Cons Of Municipal Bonds

Municipal bonds bear either fixed or variable interest. The payment schedule will depend on the terms of the bond.  The issuing government unit receives money from investors as payment for the bonds.  In return, the issuer promises to pay the bondholder the stated interest on the bonds.  Interest is paid over an agreed period that could run from a few months to a few years […]

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