government bonds
State-issued securities
Government bonds are debt securities issued by a national government to finance public spending.
The government borrows money from investors and promises to repay the principal plus interest over a fixed period.
Considered among the safest investments because they're backed by a government's taxing authority: Treasury bonds, savings bonds.
Yields on government bonds serve as benchmarks for other interest rates throughout the economy.
Firms assessing creditworthiness
- AAA ratingHighest credit assessment
- credit ratingAssigned measure of borrower reliability
- defaultPreset standard option
- S&PMajor stock index
Fitch · downgrade · upgrade · investment grade · creditworthy · risk premium · fiscal stability
Amount still owed
- national debtGovernment's accumulated borrowing
- taxationCompulsory government revenue collection
- budgetPlan for spending
- stimulusWhat prompts a reaction
treasury · spending · appropriation · debt ceiling · balanced budget · fiscal policy · sovereign debt · debt-to-GDP
Certificate for reduced price
- yieldProduce or relinquish
- maturityFull growth achieved
- durationLength of existence
- interest rateCost of borrowing money
benchmark · discount rate · premium · par value · face value · yield curve · spread · basis points
National currency management institution
- federal reserveNational monetary authority holdings
- quantitative easingAsset purchases to boost economy
- inflationSustained price level increase
- liquidityConvertibility to cash
money supply · monetary policy · interest rate policy · tightening · easing · Bank of England · Bank of Japan
Exchange for existing securities
broker · over-the-counter · bond market · settlement · clearing · custody · market maker · liquidity
Collected works or assets
- diversificationExpanding into varied areas
- retirementLeaving the workforce permanently
- pensionRetiree's ongoing benefit
- fixed-incomeAssets yielding constant returns
savings · capital · institutional investor · fund manager · brokerage · asset allocation · wealth management · safe haven
Chief school administrator
- maturity dateWhen debt must repay
- redemptionRecovery or moral restoration
- face valuePrinted denomination shown
- issue dateWhen something was released
rating agencies
Firms assessing creditworthiness
- AAA ratingHighest credit assessment
- credit ratingAssigned measure of borrower reliability
- defaultPreset standard option
S&P · Fitch · downgrade · upgrade · investment grade · creditworthy · risk premium · fiscal stability
deficit
Amount still owed
- national debtGovernment's accumulated borrowing
- taxationCompulsory government revenue collection
- budgetPlan for spending
stimulus · treasury · spending · appropriation · debt ceiling · balanced budget · fiscal policy · sovereign debt · debt-to-GDP · austerity
coupon
Certificate for reduced price
interest rate · benchmark · discount rate · premium · par value · face value · yield curve · spread · basis points · zero-coupon
central bank
National currency management institution
- federal reserveNational monetary authority holdings
- quantitative easingAsset purchases to boost economy
- inflationSustained price level increase
liquidity · money supply · monetary policy · interest rate policy · tightening · easing · Bank of England · Bank of Japan
secondary market
Exchange for existing securities
dealer · broker · over-the-counter · bond market · settlement · clearing · custody · market maker · liquidity
portfolio
Collected works or assets
- diversificationExpanding into varied areas
- retirementLeaving the workforce permanently
- pensionRetiree's ongoing benefit
fixed-income · savings · capital · institutional investor · fund manager · brokerage · asset allocation · wealth management · safe haven · laddering
principal
Chief school administrator
- maturity dateWhen debt must repay
- redemptionRecovery or moral restoration
- face valuePrinted denomination shown
issue date · callable · T-bills · gilt · bund · perpetual · amortization
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- investmentsstocks, securities, investment, equities, holdings
- securitiessecurities, shares, equities, stocks, stock exchanges
- financial instrumentspromissory notes, check, bond fund, cheque, checks
- fixed incometreasuries, T-bills, CDs, treasury notes, munis
- government debtsovereign debt, federal loans
government bondsjunk bonds
Low-rated corporate securities
penny stocks · derivatives · cryptocurrency · venture capital · lottery tickets
government bondsequities
Ownership stakes in corporations
stocks · common stock · shares · commodities · preferred stock
bonds, government, governor, governing, governed, gubernatorial, governance, governments, governess