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
Write an essay explaining that the quantities of goods and services that we can produce are limited by both our available resources and by technology. Assume we want to increase

the following information related to sun ltd.paid-up capital-1000000. earnings of the co-100000. dividend paid-80000. price-earning ratio(pie)-20. no of equity shares-100000.find o

Zero base budgets: this is a new technique, which was first used by the US Department of Agriculture in 1961. Texas instruments, an MNC, have used it in the private sector.  But,

Fixed income security is a financial obligation of an entity, which promises to pay a pre-specified amount of money at per-specified date. Debt securities (

Convertible bonds can be classified into different types such as callable bonds and puttable bonds. These bonds are discussed as follows: Basics of Callable Bonds A callabl

State the Types of integration Types of integration Horizontal Target company has same operations, and is in the same industry

Earning per share Earnings per share (EPS) are computed as profit attributable to equity divided by the number of shares in issue and ranking for dividends. EPS therefore repr

Process The process of Securitization involves the following steps: Transfer of assets by the originator (person holding the assets) to an entity (comp