Government and Agency Bonds: Investing in Federal Government Bonds
The U.S. government borrows heavily. And that's an opportunity for investors. Here's where you'll learn how to invest in government and agency securities, including U.S. Savings Bonds, Treasuries (bonds, notes, bills and TIPS) and the debt of so-called government sponsored enterprises (GSEs) and agencies such as Fannie Mae, Freddie Mac, Sallie Mae and the Tennessee Valley Authority (TVA).
What Is the Safest Investment? Treasuries Are Safe, But Yields Are Low
If you're primary goal in investing is to not lose money, consider buying U.S. government debt. Treasuries are backed by the "the full faith and credit" of the federal government. But don't be misled. There are risks in all investments -- even in treasuries.
If you're primary goal in investing is to not lose money, consider buying U.S. government debt. Treasuries are backed by the "the full faith and credit" of the federal government. But don't be misled. There are risks in all investments -- even in treasuries.
TIPS: Fighting Inflation withTreasury Inflation-Protected Securities
Inflation can eat away at your investments. But there's a very safe investment from the U.S. Treasury Department that protects investors from inflation risk. The principal invested in TIPS, or Treasury Inflation-Protected Securities, is adjusted semiannually to reflect rises in the Consumer Price Index.
Inflation can eat away at your investments. But there's a very safe investment from the U.S. Treasury Department that protects investors from inflation risk. The principal invested in TIPS, or Treasury Inflation-Protected Securities, is adjusted semiannually to reflect rises in the Consumer Price Index.
What Are Zero-Coupon Bonds and "Strips"?
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.
Zero-Coupon Bonds are sold at a deep discount to their face value. In many cases, interest is compounded and paid at maturity rather than during the life of the bond. In other cases, a financial institution "strips" the interest payment from a fixed-income investment and resells it as a zero coupon.
Overview of US Savings Bonds
When the average American thinks about bonds, he thinks about the very safe, but low yielding investments known as U.S. Savings Bonds. Although popular with beginning and ultra-conservative investors, Savings Bonds can be complicated. About.com's Banking/Loan guide offers this overview.
When the average American thinks about bonds, he thinks about the very safe, but low yielding investments known as U.S. Savings Bonds. Although popular with beginning and ultra-conservative investors, Savings Bonds can be complicated. About.com's Banking/Loan guide offers this overview.
Looking at the U.S. Treasury Department
The Treasury Department dominates the bond market by financing government debt through the sale of Treasury bills, notes and bonds. But just what, exactly, is the Treasury Department and how does it work? About.com's guide to the U.S. economy has the answer.
The Treasury Department dominates the bond market by financing government debt through the sale of Treasury bills, notes and bonds. But just what, exactly, is the Treasury Department and how does it work? About.com's guide to the U.S. economy has the answer.