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Carty & Company, Inc.

Government Bonds

Carty & Company offers U.S. Treasury Bills, Notes, and Bonds, as well as U.S. Government Agency paper and Certificates of Deposit. Our staff and traders can competitively help you with any purchase or sale of these instruments.  For additional information on Government Bond education and information please visit https://www.finra.org/investors/learn-to-invest/types-investments/bonds/types-of-bonds/ and http://finra-markets.morningstar.com/BondCenter/Default.jsp

U.S. Treasury securities (“Treasuries”) are issued by the federal government and are considered to be among the safest investments you can make.  Treasury securities are backed by the “full faith and credit” of the U.S. government. This means that come what may—recession, inflation, war—the U.S. government is going to take care of its bondholders. Treasuries are also liquid. A group of more than 20 primary dealers are required to buy large quantities of Treasuries every time there is an auction and stand ready to trade them in the secondary market. These include bills, notes, bonds, Treasury Inflation-Protected Securities (TIPS), and savings bonds. U.S. Treasury bills are short-term instruments with maturities of no more than one year. U.S. Treasury notes are intermediate to long-term investments, typically issued in maturities of two, three, five, seven, and 10 years. U.S. Treasury bonds cover terms of more than 10 years and are currently issued in 30-year maturities.  Interest is paid semiannually.

Government-Sponsored Bonds (Agency Bonds) – Agency bonds are bonds issued by government-sponsored enterprises, such as Fannie Mae and the Federal Home Loan Banks, and by wholly owned government corporations such as the Tennessee Valley Authority (TVA). When you buy an agency bond, the issuer pays you interest on the number of bonds you purchase. At a stated date in the future (the maturity date), the issuer returns your principal to you if you still hold the agency bond. The maturity dates typically range from one year to 40 years.  Some debt issued by government agencies is backed by the full faith and credit of the US government, but other agency debt is not.

Brokered Certificates of Deposit (“CDs”) – CDs are savings instruments issued by banks and savings and loan institutions. When you buy a CD, you lend the bank or savings and loan institution a set amount of money, which the institution may use to invest in securities or loans. CDs offer a variety of maturities and interest payment options and are insured, to a limited extent, by the FDIC. Unlike bank CDs, brokered CDs are tradable in the fixed income markets and do not have early redemption fees.  Like most bonds, CDs carry some default risk or credit risk, and are subject to market risk. For information about FDIC insurance, visit fdic.gov

For additional information on Government Bond education and information please visit https://www.finra.org/investors/learn-to-invest/types-investments/bonds/types-of-bonds/ and http://finra-markets.morningstar.com/BondCenter/Default.jsp