A broker who buys bills of exchange, especially Treasury bills, from traders and sells them to banks and discount houses or holds them to maturity.
A relatively low-risk short-term form of borrowing, typically maturing in 60 days or less in the U.S, often used by large creditworthy institutions as a substitute for Treasury bills, certificates of deposit, and similar instruments.
A discount house, typically a specialized financial institution or bank, focuses on operating in the discount market, primarily dealing with the discounting of bills of exchange, including Treasury bills.
In the UK, the discount market refers to a segment of the money market where banks, discount houses, and bill brokers engage in the discounting of bills and short-term financial instruments to facilitate liquidity and profitability.
Discount yield is a method to calculate the annualized yield on a security sold at a discount, such as U.S. Treasury bills. It provides an approximation of the return on investment based on the difference between the purchase price and the face value of the security.
Detailed examination of eligible paper, including Treasury bills, short-dated gilts, acceptances by banks, and their role in maintaining liquidity and influencing financial institutions' portfolios.
Floating debt refers to short-term financial obligations that are continuously refinanced. It is commonly seen in both business and government sectors and includes instruments such as commercial paper and Treasury bills.
Government securities are debt instruments issued by a government to support government spending and obligations. These securities include Treasury bills, bonds, notes, and savings bonds, all of which are considered highly creditworthy due to the backing of the government's 'full faith and credit.'
The money market is a wholesale financial market dedicated to short-term borrowing and lending with instruments like Treasury bills, trade bills, and bills of exchange, traditionally concentrated in areas like Lombard Street in London.
National debt refers to the total amount of money that the federal government owes to creditors due to borrowing. It consists of various debt instruments such as Treasury bills, Treasury notes, and Treasury bonds. The interest on the national debt is a significant part of the federal government's annual expenses.
Noncompetitive bids are a method for smaller investors to purchase U.S. Treasury bills. These bids are submitted through a Federal Reserve Bank, the Bureau of the Public Debt, or certain commercial banks, and are executed at the average price of all accepted competitive bids.
The rate of return on an investment that has no risk. The return on US and UK Treasury bills is often regarded as a very close approximation to this rate. The risk-free rate is an important concept in the Capital Asset Pricing Model (CAPM).
Annual publication by Ibbotson & Associates that provides long-term historical data on various financial instruments including stocks, bonds, treasury bills, and inflation.
A Tax Anticipation Bill (TAB) is a short-term debt obligation issued by the U.S. Treasury, primarily utilized by corporations to streamline their tax payments and manage liquidity.
Direct government obligations, comprising debt issues of the U.S. government, including Treasury bills, notes, bonds, and Series EE, Series HH, and Series I savings bonds, as distinct from government-sponsored agency issues.
