When you think of building an investment portfolio that is diverse Bonds and stocks are typically the first items that pop into your thoughts. But there's another kind of investment that's as significant, if perhaps more so: US treasuries. In this article, we'll take a closer look at the characteristics of US Treasury bonds are, what they are different from other types of bonds, and why they should be an important part of your portfolio of investments.

What are US Treasuries?

US Treasury bonds are issued by the federal government. When you buy a US Treasury bond, you're basically loaning money to government and they'll repay the principal amount plus interest in a future date. US Treasuries come in various maturity levels, including short-term Treasury bills (maturing within 1 year or less) as well as intermediate-term bonds (maturing in between 2 and 10 years) as well as long-term bonds (maturing in greater than 10 years).

How do US Treasuries differ from other types of bonds

One of the major differences in US Treasury bonds and other kinds of bonds is the level of risk. US Treasuries are thought to be among the safest investments that you can make. Since they are backed by the complete confidence and credit of the US government, the chance of default is extremely low. This makes them an extremely popular option for investors who want an insurance policy in times of market volatile.

Contrary to corporate bonds, municipal bond and municipal bonds can be issued by corporations and municipalities, respectively. While these bonds can be good investment, they come with a higher level of risk. If the issuer fails to pay its debt, you could be able to lose all or part of your investment.

Why US Treasuries should be part of your portfolio investment

米国債 are an essential component of any portfolio of investments. They offer a relatively low level of risk and can provide a steady stream of income in the form of interest payments. They also serve as an "safe refuge" in times that market turmoil, aiding to protect your portfolio from losses.

Additionally, US treasuries can be used to manage portfolio risk. For example, if you're in a portfolio that's high-risk that's heavily invested in stocks, you might want to consider adding some US Treasury bonds to mitigate the risk.

Conclusion

In conclusion, US treasuries are a valuable addition to any investment portfolio. They have a low level of risk and can provide a steady stream of income. They also act as an "safe place to be" in times that market turmoil, and help safeguard the portfolio against losses. If you're still not investing in US Treasury securities, you should consider including them in your portfolio in order to diversify your investments and lower the risk.