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What are treasuries?
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9th Nov 2009 by Michael Haltman
Considered the risk free investment, United States treasury's are government obligations that are backed by the full faith and credit of the US government. This means, similar to a municipal general obligation bond, that the government can raise taxes to a point adequate to pay the principal and interest when due.
Governments around the world have always been large buyers of treasury securities, as they are a safe haven for the excess reserves. At times of international crisis, money pours into treasury's in what is call a flight to quality. That is, out of riskier investments and into the worlds safest. Treasury's are issued in various maturities, from days to 30 and 40 years.
Considered the risk free investment, United States treasury's are government obligations that are backed by the full faith and credit of the US government. This means, similar to a municipal general obligation bond, that the government can raise taxes to a point adequate to pay the principal and interest when due.
Governments around the world have always been large buyers of treasury securities, as they are a safe haven for the excess reserves. At times of international crisis, money pours into treasury's in what is call a flight to quality. That is, out of riskier investments and into the worlds safest. Treasury's are issued in various maturities, from days to 30 and 40 years.
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27th Oct 2009 In Investing
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Subjects: treasuries,