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About Government/Agency Bonds

Potential Investors

Americans want to save for retirement, education and a home. While inflation is lower now than at any time since the 1960s, many people are concerned that investments, including Treasury securities, may lose purchasing power over the long run.

Institutional investors, such as pension funds, mutual funds, unit investment trusts, endowments, insurance companies and others looking for diversification or to match liabilities can use these securities to help ensure their investment goals are met and to protect the value of their investments.

Because of the tax treatment of these securities, tax-advantaged purchasers, such as qualified pension funds and tax deferred retirement accounts, including 40l(k) plans and individual retirement accounts (IRAs), may view an investment in inflation-protected securities as appropriate. (See the section on General Tax Treatment.)

 

All information and opinions contained in this publication were produced by the Securities Industry and Financial Markets Association from our membership and other sources believed by the Association to be accurate and reliable. By providing this general information, the Securities Industry and Financial Markets Association makes neither a recommendation as to the appropriateness of investing in fixed-income securities nor is it providing any specific investment advice for any particular investor. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and sources may be required to make informed investment decisions.