Information about Government Bonds
bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
As an example, in the US, Treasury securities are denominated in US dollars and are the safest US dollar investments. In this instance, the term risk-free means free of credit risk. However, other risks still exist: such as currency risk for foreign investors (for example non-US investors of US Treasuries would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflation risk - in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue inflation-indexed bonds, which protect investors against inflation risk.
An example of somewhat risky bonds issued by a government can be given with countries that have less than perfect capabilities of conducting financial policies. Such an example is Bulgaria due to its being dependent on the world economy and economic institutions much more than, say, the US. Some of this country's bonds were only given an A-scale rating after 2004. As of February 2006 Standard & Poor's rates Bulgaria's long-term debt denominated in domestic currency at BBB+. And this rating is the result of almost a decade of constantly decreasing risk (and increasing ratings). We should also note that this country's short-term debt is in fact currently rated A.
Issued By: Ministry of Finance (MoF)
Issued By: Agence France Trésor, the French Debt Agency
Issued By: Finanzagentur GmbH, the German Finance Agency
Issued By: Dipartimento del Tesoro
Issued By: UK Debt Management Office
Issued By: Bureau of the Public Debt
For example, if you borrow money and have to pay interest once a month, you have issued a fixed-income security.
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Economic policy
Monetary policy
Central bank Money supply
Fiscal policy
Spending Deficit Debt
Trade policy
Tariff Trade agreement
Finance
Financial market
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)
Risk
Government bonds are usually referred to as risk-free bonds, because the government can raise taxes or simply print more money to redeem the bond at maturity. Some counter examples do exist where a government has defaulted on its domestic currency debt, such as Russia in 1998- the "ruble crisis" , though this is very rare.As an example, in the US, Treasury securities are denominated in US dollars and are the safest US dollar investments. In this instance, the term risk-free means free of credit risk. However, other risks still exist: such as currency risk for foreign investors (for example non-US investors of US Treasuries would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflation risk - in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue inflation-indexed bonds, which protect investors against inflation risk.
An example of somewhat risky bonds issued by a government can be given with countries that have less than perfect capabilities of conducting financial policies. Such an example is Bulgaria due to its being dependent on the world economy and economic institutions much more than, say, the US. Some of this country's bonds were only given an A-scale rating after 2004. As of February 2006 Standard & Poor's rates Bulgaria's long-term debt denominated in domestic currency at BBB+. And this rating is the result of almost a decade of constantly decreasing risk (and increasing ratings). We should also note that this country's short-term debt is in fact currently rated A.
Issuance
Government bonds are issued through agencies that are part of the government's treasury department, for example- Bunds are bonds issued by the German Finance Agency, denominated in euros
- Gilts are bonds issued by the UK Debt Management Office and are denominated in sterling
- US Treasuries are issued by the Bureau of the Public Debt
See also
List of government bonds from the main issuers
- for a comprehensive list of government bonds, see List of government bonds
| Currency | Country | Generic Name or Nickname | Rating (S&P/Moody's) | Negotiable debt at mid-2005 (US dollar bn equivalent) | Government financial liabilities as % of GDP (end 2003 - source : OECD) | Issuer | Internet site |
|---|---|---|---|---|---|---|---|
| Yen | ){kind=small} Japan | JGBs | AA-/A2 | 6,666 | 157.5% | Ministry of Finance (MoF) | Site |
| US dollar | ){kind=small} United States | US Treasuries | AAA/Aaa | 4,000 | 62.5% | Bureau of the Public Debt | Site |
| Euro | ){kind=small} Italy | BTPs | A+/Aa2 | 1,530 | 120.9% | Dipartimento del Tesoro | Site |
| Euro | ){kind=small} France | OATs | AAA/Aaa | 1,300 | 71.2% | Agence France Trésor | Site |
| Euro | ){kind=small} Germany | Bunds | AAA/Aaa | 1,020 | 65.1% | Finanzagentur GmbH | Site |
| Pound sterling | ){kind=small} United Kingdom | Gilts | AAA/Aaa | 703 | 42.0% | UK Debt Management Office | Site |
)
Main credit ratings
Asia
Japan (AA-/A2)
Issued By: Ministry of Finance (MoF)
- Japanese Government Bonds (JGBs)
- Revenue Bonds/Straight Bonds
- Financing Bills
- Subsidy Bonds
- Subscription Bonds
- Contribution Bonds
- Demand Bonds (kofu kokusai)
Europe
Eurozone
France (AAA/Aaa)
Issued By: Agence France Trésor, the French Debt Agency
- OATs
- BTFs - bills
- BTANs - 1 to 6 year notes
- Obligations assimilables du Trésor (OATs) -
- TEC10 OATs - floating rate bonds indexed on constant 10year maturity OAT yields
- OATi - French inflation-indexed bonds
- OAT€i - Eurozone inflation-indexed bonds
Germany (AAA/Aaa)
Issued By: Finanzagentur GmbH, the German Finance Agency
- Bunds
- Bubill - bills
- Bundesschatzanweisungen (Schätze) - 2 year notes
- Bundesobligationen (Bobls) - 5 year notes
- Bundesanleihen (Bunds) - bonds
Italy (A+/Aa2)
Issued By: Dipartimento del Tesoro
- BTPs
- Buoni Ordinari del Tesoro (BOTs) - bills up to 1 year
- Certificati del Tesoro Zero Coupon (CTZ) - bills up to 2 year
- Buoni del Tesoro Poliannuali (BTPs) - bonds
- Certificati di Credito del Tesoro (CCTs) - floating rate notes
- BTP Indicizzato all'Inflazione - inflation linked bonds
United Kingdom (AAA/Aaa)
Issued By: UK Debt Management Office
- Gilts
- Conventional Gilts
- Index-linked Gilts
- Double-Dated Gilts
- Undated Gilts
- Gilt Strips
North America
United States (AAA/Aaa)
Issued By: Bureau of the Public Debt
- US Treasuries
- Treasury bill
- Treasury note
- Treasury bond
- TIPS
- Savings bond
In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices
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The bond market, also known as the debt, credit, or fixed income market, is a financial market where participants buy and sell debt securities usually in the form of bonds. The size of the international bond market is an estimated $45 trillion of which the size of outstanding U.S.
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worldwide view.
Fixed income refers to any type of investment that yields a regular (or fixed) return.For example, if you borrow money and have to pay interest once a month, you have issued a fixed-income security.
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A corporate bond is a bond issued by a corporation. The term is usually applied to longer-term debt instruments, generally with a maturity date falling at least a year after their issue date. (The term "commercial paper" is sometimes used for instruments with a shorter maturity.
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In the United States, a municipal bond (or muni) is a bond issued by a state, city or other local government, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, school districts, publicly owned airports and seaports,
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Bond valuation is the process of determining the fair price of a bond. As with any security or capital investment, the fair value of a bond is the present value of the stream of cash flows it is expected to generate.
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In finance, a high yield bond (non-investment grade bond, speculative grade bond or junk bond) is a bond that is rated below investment grade at the time of purchase.
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A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately.
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In financial markets, the stock capital of a corporation or a joint-stock company is the capital raised through the issuance, sale and distribution of shares. A person or organization that holds at least a partial share of stock is called a shareholder.
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Preferred stock, also called preferred shares or preference shares, is typically a higher ranking stock than common stock, and its terms are negotiated between the corporation and the investor.
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A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities.
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The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators,
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The Retail forex (Retail Currency Trading or Retail Forex or Retail FX) market is a subset of the larger Foreign exchange market.
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History
Retail trading is more structured than the forex market as a whole...... Click the link for more information.
The derivatives markets are the financial markets for derivatives. The market can be divided into two, that for exchange traded derivatives and that for over-the-counter derivatives.
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In finance, a credit derivative is a financial instrument or derivative whose price and value derives from the creditworthiness of the obligations of a third party, which is isolated and traded.
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- Returns: Predictable dividend, often franked therefore possible tax advantage to the holder
- Capital price:
- *Price moves in line with share price (fixed conversion terms e.g.
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Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security. For example, buying a call option provides the right to buy a specified quantity of a security at a set strike price at some time on or
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In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a specified price. The future date is called the delivery date or final settlement date.
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A forward contract is an agreement between two parties to buy or sell an asset (which can be of any kind) at a pre-agreed future point in time. Therefore, the trade date and delivery date are separated.
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swap is a derivative in which two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap.
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Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
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Over-the-counter (OTC) trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. It is the opposite of exchange trading which occurs on futures exchanges or stock exchanges.
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Property law
Part of the common law series
Acquisition of property
Gift · Adverse possession · Deed
Lost, mislaid, and abandoned property
Alienation · Bailment · License
Estates in land
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Part of the common law series
Acquisition of property
Gift · Adverse possession · Deed
Lost, mislaid, and abandoned property
Alienation · Bailment · License
Estates in land
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The Spot Market or Cash Market is a commodities or securities market in which goods are sold for cash and delivered immediately. Contracts bought and sold on these markets are immediately effective.
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Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects.
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In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices
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financial market participant categories, Investor vs. Speculator and Institutional vs. Retail. Action in financial market by Central banks is usually regarded as intervention rather than participation, although evidence exists in the Sprott '"Visible Hand of Uncle Sam"' report that
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Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to enhance corporate value while reducing the firm's financial risks.
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Personal finance is the application of the principles of finance to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, taking into account various financial
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Economic policy
Monetary policy
Central bank Money supply
Fiscal policy
Spending Deficit Debt
Trade policy
Tariff Trade agreement
Finance
Financial market
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