Government Security

Dictionary Says

Definition of 'Government Security'

A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default.
Investopedia Says

Investopedia explains 'Government Security'

This includes short-term Treasury bills, medium-term Treasury notes, and long-term Treasury bonds.

Related Definitions

  • Default

    1. The failure to promptly pay interest or principal when due. Default occurs when a debtor is unable to meet the legal obligation of debt repayment. Borrowers may default when they are ...
    Read More »
  • Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This flight is usually caused by uncertainty in the financial or ...
    Read More »
  • Risk-Free Asset

    An asset which has a certain future return. Treasuries (especially T-bills) are considered to be risk-free because they are backed by the U.S. government.
    Read More »
    • Treasury Bill - T-Bill

      A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $1,000 up to a maximum purchase of $5 million and ...
      Read More »
    • Treasury Bond - T-Bond

      A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest payments semi-annually and the income that holders receive ...
      Read More »
    • Repurchase Agreement - Repo

      A form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the ...
      Read More »
    • Risk-Free Rate Of Return

      The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a ...
      Read More »
    • Sovereign Bond

      A debt security issued by a national government within a given country and denominated in a foreign currency. The foreign currency used will most likely be a hard currency, and may ...
      Read More »
    • Treasury Automated Auction Processing System - TAAPS

      A computer network system developed by the Federal Reserve (and facilitated by its banks) to process the tenders received for treasury securities. The treasury securities are traded ...
      Read More »
    • Lehman Brothers Government/Corporate Bond Index

      An unmanaged market-weighted index, comprised of government and investment grade corporate debt instruments with maturities of one year or greater. The Lehman Brothers ...
      Read More »

Articles Of Interest

Partner Links