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Definition of Treasury securities

Treasury Securities Image 1

Treasury securities

securities issued by the U.S. Department of the treasury.



Related Terms:

Current issue

In treasury securities, the most recently auctioned issue. Trading is more active in current
issues than in off-the-run issues.


Government securities

Negotiable U.S. treasury securities.


maturity premium

Extra average return from investing in longversus short-term treasury securities.


Quality spread

Also called credit spread, the spread between treasury securities and non-treasury securities
that are identical in all respects except for quality rating. For instance, the difference between yields on
Treasuries and those on single A-rated industrial bonds.


Risk-free Rate

The rate of return on an investment with known future benefits; a
riskless rate of return, often estimated using the return earned on
short-term U.S. treasury securities



Treasuries

Related: treasury securities.


Yield curve

Graph of yields (vertical axis) of a particular type of security
versus the time to maturity (horizontal axis). This curve usually slopes
upward, indicating that investors usually expect to receive a premium for
securities that have a longer time to maturity. The benchmark yield curve is
for U.S. treasury securities with maturities ranging from three months to 30
years. See Term structure.


Treasury Securities Image 2

Asset-Backed Securities

Bond or note secured by assets of company.


Book-entry securities

The treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the
Fed in the names of member banks, which in turn keep records of the securities they own as well as those they
are holding for customers. In the case of other securities where a book-entry has developed, engraved
securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are
usually kept in a central clearinghouse or by another agent.


Debt securities

IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
other instruments.


Discount securities

Non-interest-bearing money market instruments that are issued at a discount and
redeemed at maturity for full face value, e.g. U.S. treasury bills.


Exempt securities

Instruments exempt from the registration requirements of the securities Act of 1933 or the
margin requirements of the SEC Act of 1934. Such securities include government bonds, agencies, munis,
commercial paper, and private placements.


Federal agency securities

securities issued by corporations and agencies created by the U.S. government,
such as the Federal Home Loan Bank Board and Ginnie Mae.


Manufactured housing securities (MHSs)

Loans on manufactured homes - that is, factory-built or
prefabricated housing, including mobile homes.


Mortgage-backed securities

securities backed by a pool of mortgage loans.


Mortgage-Backed Securities Clearing Corporation

A wholly owned subsidiary of the Midwest Stock
Exchange that operates a clearing service for the comparison, netting, and margining of agency-guaranteed
MBSs transacted for forward delivery.


Treasury Securities Image 3

Pass-through securities

A pool of fixed-income securities backed by a package of assets (i.e. mortgages)
where the holder receives the principal and interest payments. Related: mortgage pass-through security


Project loan securities

securities backed by a variety of FHA-insured loan types - primarily multi-family
apartment buildings, hospitals, and nursing homes.



Public Securities Administration (PSA)

The trade association for primary dealers in U.S. government
securities, including MBSs.


Securities

A general term for stock, bonds, or other other financial assets.


Securities analysts

Related:financial analysts


Securities and Exchange Commission (SEC)

The federal agency that
oversees the issuance of and trading in securities of public businesses.
The SEC has broad powers and can suspend the trading in securities of a
business. The SEC also has primary jurisdiction in making accounting
and financial reporting rules, but over the years it has largely deferred to
the private sector for the development of generally accepted accounting
principles (GAAP).


Securities and Exchange Commission (SEC)

Federal agency responsible for regulation of securities markets in the United
States.


Securities and Exchange Commission (SEC)

A federal agency that administers securities legislation,
including the securities Acts of 1933 and 1934. Public companies in the United States
must register their securities with the SEC and file with the agency quarterly and annual financial
reports.


Securities & Exchange Commission

The SEC is a federal agency that regulates the U.S.financial markets.


Stripped mortgage-backed securities (SMBSs)

securities that redistribute the cash flows from the
underlying generic MBS collateral into the principal and interest components of the MBS to enhance their use
in meeting special needs of investors.


Treasury bill

Short-term U.S. government security issued at a discount from
the face value and paying the face value at maturity.


Treasury Bill

A short-term (less than one year) government discount bond.



Treasury Bill

Short-term government security.


Treasury bills

Debt obligations of the U.S. treasury that have maturities of one year or less. Maturities for Tbills
are usually 91 days, 182 days, or 52 weeks.


Treasury bond

Long-term debt obligation of the U.S. government that makes
coupon payments semi-annually and is sold at or near par value in $1000
denominations or higher. Face value is paid at maturity.


Treasury bonds

Debt obligations of the U.S. treasury that have maturities of 10 years or more.


Treasury notes

Debt obligations of the U.S. treasury that have maturities of more than 2 years but less than 10 years.


Treasury stock

Common stock that has been repurchased by the company and held in the company's treasury.


Treasury stock

Shares that were sold to the public but have since been repurchased by the company in the open market. treasury stock is deducted from the equity section, and is therefore a contraequity account.


treasury stock

Stock that has been repurchased by the company and held in its treasury.


U.S. Treasury bill

U.S. government debt with a maturity of less than a year.


U.S. Treasury bond

U.S. government debt with a maturity of more than 10 years.


U.S. Treasury note

U.S. government debt with a maturity of one to 10 years.


Dutch auction

Auction in which the lowest price necessary to sell the entire offering becomes the price at
which all securities offered are sold. This technique has been used in treasury auctions.


Money market

Money markets are for borrowing and lending money for three years or less. The securities in
a money market can be U.S.government bonds, treasury bills and commercial paper from banks and
companies.


money market fund

A type of mutual fund that invests primarily in short-term debt securities maturing in one year or less. These include treasury bills, bankers’ acceptances, commercial paper, discount notes and guaranteed investment certficates.


New money

In a treasury auction, the amount by which the par value of the securities offered exceeds that of
those maturing.


Noncompetitive bid

In a treasury auction, bidding for a specific amount of securities at the price, whatever it
may turn out to be, equal to the average price of the accepted competitive bids.


Paydown

In a treasury refunding, the amount by which the par value of the securities maturing exceeds that
of those sold.


Reopen an issue

The treasury, when it wants to sell additional securities, will occasionally sell more of an
existing issue (reopen it) rather than offer a new issue.


Theoretical spot rate curve

A curve derived from theoretical considerations as applied to the yields of
actually traded treasury debt securities because there are no zero-coupon treasury debt issues with a maturity
greater than one year. Like the yield curve, this is a graphical depiction of the term structure of interest rates.



 

 

 

 

 

 

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