CHAPTER 6
U.S. Treasury Securities
This chapter describes marketable bonds and other securities issued by the U.S. Department of the Treasury. Popularly known as Treasuries, these securities are all backed by the full faith and credit of the U.S. government. With the United States’ rise to world economic dominance, such backing represents the strongest safety guarantee available. Accordingly, these securities have less default, event, liquidity, and political risk than any other investment. That backing does not mean that they are without risk. Longer-term Treasuries still have substantial market risk. There are five types of Treasury Securities discussed in this chapter: Treasury bills, Treasury notes, Treasury bonds, Treasury strips, and TIPS. ...
