TREASURY BONDS
Short-term instrument where the investor buys at a lower price and at maturity receives the nominal value.
Best suited for:
Clients seeking short-term investment
State Titles
Government securities are a way to invest savings by purchasing instruments issued by the government. Instead of having the money sit in an account or deposit, the investor can invest it in Treasury Bills or Bonds, depending on the term and financial objective.
Treasury Bills are shorter-term and are typically used by clients who want to invest for a few months to a year. The profit is created from the difference between the purchase price and the value received at maturity.
Bonds are longer-term and usually pay periodic interest over their term. They may be suitable for clients looking to invest for several years and receive interest payments during the investment period.
BONDS
A medium/long-term instrument that typically pays periodic interest, usually every 6 months.
Best suited for:
Clients seeking longer term and periodic income
Treasury Bills and Bonds can be alternatives for investing savings, but the choice between them depends on the term, financial objectives, liquidity needs and risk tolerance. Contact FINARCH experts for a professional consultation and find out if government securities are suitable for your financial profile.