Government Debt
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This chapter focuses on the origin and functionality of U.S. government debt (Treasuries). Debt in the U.S. has been increasing for many decades, especially since the financial crisis of 2007–2008. The types of debt securities are discussed along with the auction process to obtain these investment vehicles. All investments involve risks and rating agencies attempt to rank and grade the risk associated with sovereign debt. Default rates, derivative contracts, and risk are important in making investment decisions with government debt. Investors could range from long-term investors, short-term speculators, and others. This chapter concludes with the outlook into the future and the historic high debt-to-gross-domestic product ratio.
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2015 ◽
Vol 9
(1and2)
◽
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2018 ◽
Vol 2
(1)
◽
pp. 72
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