Gov Debt Flashcards
US treasury characteristics
least volatile, AAA rating, largest traded security
characteristics of treasury
non negotiable, be rebought, no credit risk
risks of US treasury securities
purchase power and interest risks
types of gov securities
t bills, t notes, t bonds, TIPS, STRIPS
short term treasury security
t bills
2 treasury securities that pay semi annual interest
t note, t bill, TIPS
which treasury dont have inflation risk
TIPS
how are US gov debt quoted
1/32nds
treasury securities that are zero coupon bonds
t bills, TIPS, treasury receipts
STRIP
where gov issue strips of coupon of the bond so they can be stripped (principal and interest paid separately), no reinvest risk
TIPS
no inflation or purchase risks
mortgage back securities are?
FHLB, Fannie, ginnie, freddie, sallie
risks of mortgage backed securities
extension and prepayment risks
ginnie mae
backed by full faith and US credit
which security deals with student loans
sallie mae
fannie is (private/public)
public
mortgage security backed implicitly by US gov
fannie, freddie, sallie
mortgage security need to pay fed, state, local tax is?
ginnie
