Alamo Capital has specialized in US Treasury investing since 1987. We have an in-house fixed income trading desk that is focused on maintaining a competitive inventory of Treasuries. U.S. Treasuries, also known as “government securities”, are one of the most secure and liquid securities in the financial market. Treasuries are generally bought as a security that provides safety and minimal risk because U.S. Treasuries are secured by the full faith and credit of the United States government.
U.S. Treasuries are issued for many purposes, like:
- The operation of the United States Government
- One of many ways the Federal Reserve manages the interest rate
One major advantage of US Treasuries is that they are exempt from state and municipal taxes – this is especially important in states with high income tax rates.
We offer the following types of U.S. Treasuries:
- Treasury Bills (T-Bills) – short-term
Treasury Bills – A U.S. government debt security with a maturity of less than one year. T-bills do not pay a fixed interest rate. They are issued through a competitive bidding process at a discount from par.
- Treasury Notes (T-Notes) – medium-term
Treasury Notes – A marketable, fixed-interest rate U.S. government debt security with a maturity between one and 10 years.
- Treasury Bonds (T-Bonds) – long-term
Treasury Bonds – A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds are usually issued with a minimum denomination of $1,000.
Treasuries are mainly used as safe havens for investors, especially when the markets head in a negative direction. The fact that these debt instruments offer very little risk of default means the interest rate investors receive is relatively low. The price of treasuries rises as interest rates fall, and the opposite is true when interest rates rise. Therefore, the best time to buy treasuries is when interest rates are relatively high.
Alamo Capital offers secondary liquidity on U.S. Treasury bonds and offerings can be found on B.O.L.T.S. Click here to view our Bond On-Line Trading System inventory.
If you are interested in learning more about U.S. Treasuries, please contact an Alamo Capital Bond Specialist by calling (877) 68-ALAMO – or – (877) 682-5266, fill out our brief contact form or email [email protected].