Capital Markets Examiner School, Providence, RI

US Government Securities

 Bonds, Notes, Bills issued by the US Treasury

 Full Faith and Credit of the US Treasury

 Credit Risk

 Market Risk

 Liquidity Risk

US Government Agency Securities

 Debt issued by Agencies of the US Government  Either Explicit or Implicit Guarantee by the US Treasury

Bullets • Stated Maturity • Fixed or Floating Rate Credit Risk Market Risk Liquidity Risk

Callables • Callable at Issuer’s Option • Fixed or Floating Rate Credit Risk Market Risk Liquidity Risk

Structured Notes • Typically Step‐Up Bonds • Usually Callable Credit Risk Market Risk Liquidity Risk