US Government Securities
The US government relies heavily on debt financing. Since the 1960s, revenues have seldom covered expenses, and the differences have been financed primarily by issuing debt instruments. Moreover, new debt must be issued in order to get the necessary funds to pay off old debt that comes due.
About two-thirds of the public debt is marketable, meaning that it is represented by securities that can be sold at any time by the original purchaser through government security dealers.
Marketable issues include Treasury bills, notes, and bonds.
US Treasury Bondshave maturities greater than ten years at the time .of issuance, with denominations ranging from $1,000 upward. Some Treasury bond issues have call provisions under which the Treasury has the right to force the investor to sell the bonds back to the government at par value.
US Savings Bondsare nonmarketable securities, offered only to individuals and selected organizations. There is a limit to the amount that may be purchased by any person in a single year. Two types are available: pure discount bonds and bonds that pay interest semiannually but can be redeemed for par value at any time.
To support credit for home purchase, the government has authorized the issuance of participation certificates. The most important certificates of this type are those issued by the Government National Mortgage Association (GNMA or "Ginnie Mae"), they are known as GNMA Modified Pass-Through Securities. Unlike most bonds, GNMA pass-through securities pay investors on a monthly basis an amount of money that represents both a pro rata return of principal and interest on the underlying mortgages.
US Corporate bonds.Corporate bonds are similar to other kinds of fixed-income securities. An issue of bonds is generally covered by an indenture, in which the issuing corporation promises a specified trustee that it will comply with a number of stated provisions, like the timely payment of required coupons and principal on the issue. The major types are as follows:
Mortgage bondsare debt that is secured by the pledge of specific property. In the event of default, the bondholders are entitled to obtain the property in question.
Collateral trust bondsare debt-backed by other securities that are usually held by the trustee.
Debenturesare general obligations of the issuing corporation representing unsecured debt. A bond indenture will often require the issuing corporation to make annual payments into a sinking fund.
Words you may need:
treasury bondдолгосрочные казначейские обязательства (облигации)
call provisionусловие займа, предусматривающее право эмитента досрочно выкупить ценные бумаги
par valueпаритет, номинал
participation certificateсертификат участия
Government National Mortgage Association(GNMA) Правительственная национальная ипотечная ассоциация
pass-through securityценная бумага, выпущенная на базе пула ипотек
pro rataadj, adv пропорциональный, пропорционально
fixed-income securityценная бумага с фиксированным доходом
indenturen письменное соглашение об эмиссии облигаций
trusteen доверенное лицо, опекун
mortgage bondоблигация, обеспеченная закладной под недвижимость
pledgen залог
collateral trust bondоблигация, обеспеченная другими ценными бумагами, хранящимися на условиях траста
unsecured debtнеобеспеченный долг
sinking fundвыкупной фонд, фонд погашения задолженности