Types of t-bills, Financial Management

Types of T-Bills

In the US markets, though there are many types of T-bills, they can be broadly classified into two types - regular-series bills and irregular-series bills.

Regular-series bills are issued routinely by competitive auctions, either on a weekly or on a monthly basis. These bills are issued in regular series. They are issued by Federal Reserve district banks and their branches with different maturities of 3 months (13 weeks), 6 months (26 weeks) or 12 months (52 weeks). New issues of three or six month bills are auctioned weekly; whereas, new issues of one year bills are normally sold once in each month.

Irregular-series bills are issued when a special cash need arises for the Treasury. These T-bills are of two types - strip bills and cash management bills. Strip bills are nothing but a package of bills requiring investors to bid for an entire series of bills with different maturities. Investors who bid successfully must accept bills at their bid price each week for several weeks running. Cash management bills, on the other hand, consist simply of reopened issues of bills that were sold in prior weeks. The reopening of a bill issue normally occurs when there is an unusual or unexpected treasury need for more cash.

 

Posted Date: 9/11/2012 4:12:49 AM | Location : United States







Related Discussions:- Types of t-bills, Assignment Help, Ask Question on Types of t-bills, Get Answer, Expert's Help, Types of t-bills Discussions

Write discussion on Types of t-bills
Your posts are moderated
Related Questions
Use the excel spreadsheet to project the net income for Winnebago from assumptions about key revenue & expense items.   Use the following assumptions to evaluate the projected net

discuss the applicability of operating cycle in poultry (consider broilers)

Deseasonalizing a Time Series The Ratio to Average Method allows us to identify the component of the seasonal variation in time series data and the indices themselves help us

What is the operating leverage effect and what causes it?  What are the potential benefits and negative consequences of high operating leverage? The operating leverage effect i

Q. Cost of Holding Inventories? The holding of inventories engages blocking of a firm's funds. The various risks as well as costs in holding inventories are as below: (1) Ca

Examples of ICQ's and ICEQ's ICQ: "Does an authorised senior person review purchase invoices before payment is made?" ICEQ: "Can payments be made on purchase invoices th

Ashok is to receive an amount of Rs. 15,00,000 from his relative after 3 years. He wants to buy a house for which he wants the money to be paid now. His relative had al

how is operating cycle applicable to poultrybusiness in Uganda (broilers)

Does high operating leverage always mean high business risk?  Explain. High operating leverage does not all the time mean high business risk.  If the companies sales are quite

Question 1 International trade is the economic interaction among different nations involving the exchange of goods and services. Discuss the role of Banks in International Trade T