1993 | OriginalPaper | Chapter
Treasury Securities and Treasury Derivatives
Author : Erik Banks
Published in: The Credit Risk of Financial Instruments
Publisher: Palgrave Macmillan UK
Included in: Professional Book Archive
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A Treasury security (or simply Treasury) is the name given to a debt obligation of the US Federal Government. Without spending any length of time detailing why and how the US Government funds itself, the vital component in this discussion is the end result of the funding process, the Treasury security itself. When the government decides it needs to raise a certain amount of dollars to finance its operations, one of its primary means is through the issuance of bills, notes or bonds. These three instruments make up Treasury securities. The distinction between the three is primarily a question of maturity, issuance frequency and coupon payment.