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SG Long & Company offers access to a vast array of debt issued by the United States Government ~ commonly referred to as Treasuries due to the fact that the Department of the Treasury issues and backs the debt. The United States Government has never defaulted on a debt obligation, and as such Treasuries are seen as a very safe place in which to invest. Treasuries come in essentially four forms - bills, notes, bonds and TIPS.

Treasury bills mature in one year or less. These are zero coupon instruments, which means that you receive no periodic cash flows from a T-bill ~ instead you receive slightly more than you invested initially when the T-bill matures. Due to the short-term investment horizon and the historic safety of T-bills, an investor should expect very conservative returns from investing in T-bills.

Treasury notes mature in 1-10 years andtypically pay semi-annual interest ~ meaning that the investor receives periodic cash flows prior to maturity. They typically return slightly more than T-bills due to the fact that they promise return of principle @ a slightly lately date. Because they are backed by the full faith and credit of the United States Government, they are generally considered to be safe investments and as such offer conservative returns relative to other investment options.

Treasury bonds mature in 10-30 years and typically also pay semi-annual interest. These predictably usually return more than shorter term Treasury obligations. Historically, due to the creditworthiness of the United States Government, they have offered relatively conservative returns when compared to other investment options.

TIPS (or Treasury Inflation Protected Securities) are United States debt obligations that are designed to compensate the investor when inflationary forces threaten to erode the value of the periodic cash flows typical in fixed income vehicles. The interworkings of TIPS are somewhat complex, but in short ~ if an investor desires the safety of government backing combined with inflation protection, they are an appropriate investment.

Treasuries are often referred to as "cash-equivalents" due to the fact that the immensity of the Treasury market offers immediate liquidity. To simplify - the prices of Treasuries are observable on a moment-to-moment basis - meaning that an investor can evaluate whether or not to buy or sell Treasuries without any of the opaqueness that sometimes affect other bond markets. In finance terms - it is a very efficient market not unlike the stock market which also offers up to date pricing due to transaction volume. Please contact your SG Long & Company Financial Advisor for a more detailed explanation of the advantages and risks of Treasuries.