Investing In Interest Rate Options

Interest rate options are options on the yield of U.S. Treasury securities. Interest rate options enable investors to speculate on the up and down movement of interest rates Options are available on short, medium, and long-term rates. Interest rate options are “yield-based options”. As in other options transaction “call and put” buyers are investing on [...]

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The Different Types Of Government Bond Funds

There is a surprising array of managed investment funds dedicated to investing in government issued bonds. Generally government bond funds are classified as follows: Long Government Bond Funds Intermediate Government Bond Funds Short Government Bond Funds Inflation Protected Bond Funds As you can appreciate from their respective names each type of government bond fund takes [...]

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How To Buy A Savings Bond As A Gift

U.S. savings bonds are investments in the U.S. Treasury. Your investment is savings bonds is backed by the full faith and credit of the United States. In other words, as investments go, savings bonds are as safe an investment as currently exists. This is important since savings bonds, which are often given as gifts to [...]

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The Basics of Muncipal Bonds – Part 2

To maintain infrastructure is a vital necessity to governments, and can be costly to do.  This need brought about a new way to invest: municipal bonds.  These bonds have less risk than other investments; one can easily check the issuing governments previous success on repaying its obligations, as well as what others who have purchased [...]

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Basics of Investing in Municipal Bonds

For risk-averse investors municipal bonds or “munis” offer a harbor in a storm of economic uncertainty and stock market volatility. Muncipal bonds are typically backed by the tax raising ability of local or “muncipal governments”. They are usually issued to fund government projects such as road construction, waste water treatment plant construction, school construction and [...]

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The Risks of Investing in Foreign Government Bonds

Muncipal bonds or “munis”, U.S. treasury bonds and most other forms of government bonds are, by comparison to other investments, usually considered safe and secure investments. However, not all governments are created equally and, therefore like all other forms of investments some government bonds carry greater risk. For example, foreign government bonds may be subject [...]

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Basics of United States Government Bonds

Government bonds are an investment like and unlike any other bond. Like corporate bonds, which may be used instead of public stock offerings to fund corporate expansions, U.S. government bonds are issued to, “help to finance the federal government”, which as you know is a vast enterprise. As long as elected government officials refuse to [...]

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Strong Demand for Treasury Inflation Protected Securities or TIPS

According to a “Public Debt News release“, issued by the U.S. Department of the Treasury, more than $7 billion dollars of Treasure Inflation Protected Securities or TIPS we sold at auction today. The Bid-to-Cover Ratio for the auction was $19,474,572,300/$7,000,002,300 or 2.78, indicating that there was strong demand for the TIPS. The 2.78 ratio is [...]

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The Basic Types of Federal Government Bonds and Bills

As far as choice goes, the federal government offers an array of bonds, treasuries and other investment options to any US citizen. Of the bonds offered, the more commonly purchased are government bonds, T-bills, and I-bonds. Thanks to Federal government’s reputation of having, “…never failed to pay its debt” government bonds are considered the safest [...]

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