Treasury Bills (T-Bills)
| Treasury Bills, or T-Bills, are short-term debt obligations issued by the US government. T-Bills are issued in terms of 4, 13, 26, and 52 weeks and are sold at a discount from face value. The difference between the purchase price and the face value is the interest earned. T-Bills are a popular investment for individuals and institutions looking for a safe, low-risk investment. T-Bills are backed by the full faith and credit of the US government and are considered one of the safest investments in the world. Investors in T-Bills don’t have to worry about credit risk or default risk, as the US government has never defaulted on a debt obligation. T-Bills are also very liquid, meaning they can be easily sold in the secondary market. If you’re looking for a safe, low-risk investment, T-Bills may be the right investment for you. |
Share this glosssary
