T-Bills
Most investors' prime goal is to maximize returens on a given level of risk. i.e holding efficient portfolios. Most investors who want to make sure that they get their invested with certainty usually invest in treasury bills. Treasury bills are debt instruments issued by the U.S federal government in order to raise money and pay off its maturing debts. Treasury bills are the safest and most secure type of investment wit a minimal level of risk. Its low risk is due to the credit of the U.S government insuring that all investments and interest would be paid on time. They are also easily converted to cash so its very liquid.
This paper explains everything one needs to know about Treasury bills and the treasury bills market. The paper begins by giving the characteristics of a Treasury bills, its lack of default risk, its liquidity, its tax status and its denomination. The second part of the paper gives the quotes on the T Bills, it gives how it is quoted, the bid quotes and the submission of the bids, and the ask quotes. It also gives the yield and the calculation of yields on the T Bills. The third part of the paper gives the primary market for the T Bills. It gives how it is initially issued, the investors, ie the buyers and sellers, the dealers, the brokers, the auctioning and the auctioning procedures. The fourth part of the paper deals with the secondary market, this is the over the counter market and will discuss the the differ over the counter markets that T bills are traded which includes the wi market, the Repo market, government purchases and the buybacks. The final part of the report will gives the regulatory agencies that run these markets.