Government Bonds: Treasury Securities and Sovereigns

Investment Portfolio Management · 3:39

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Lyrics

[Verse 1]
When governments need money to spend
They issue bonds that you can lend
Treasury bills for short-term needs
Notes and bonds for longer deeds
Uncle Sam's the safest bet
Full faith and credit, no regret

[Chorus]
Government bonds, safe and sound
Treasury bills, notes, bonds all around
T-bills short, notes middle ground
Bonds long-term, security found
Sovereign debt from lands afar
Credit ratings show how safe they are

[Verse 2]
Treasury bills mature in one year or less
Sold at discount, no interest mess
Buy for ninety, get back one hundred
The difference earned when time has numbered
Auctioned weekly by the Fed
Liquidity keeps markets fed

[Chorus]
Government bonds, safe and sound
Treasury bills, notes, bonds all around
T-bills short, notes middle ground
Bonds long-term, security found
Sovereign debt from lands afar
Credit ratings show how safe they are

[Verse 3]
Treasury notes run two to ten years
Semi-annual coupons calm your fears
Treasury bonds for thirty year holds
Regular payments worth their gold
STRIPS are zeros, principal waits
Till maturity compensates

[Bridge]
Foreign governments issue too
Sovereign bonds in currencies new
German Bunds and Japanese JGBs
UK Gilts across the seas
Credit risk varies by the nation
Check the ratings for evaluation

[Chorus]
Government bonds, safe and sound
Treasury bills, notes, bonds all around
T-bills short, notes middle ground
Bonds long-term, security found
Sovereign debt from lands afar
Credit ratings show how safe they are

[Outro]
From AAA to junk grade low
Know the risks before you go
Government backing gives you peace
But foreign bonds may risk decrease
Treasury strong, the golden choice
Let safety be your guiding voice

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