In recent article, I explained how to invest in Bond Funds. Now, I’ll be explaining the four basics in investing, particularly government securities.

What is government securities? Investopedia define this as “short-term Treasury bills, medium-term Treasury notes, and long-term Treasury bonds.” Government Securities are said to be the safe. Anyone can invest.

There are four types of Government Securities:

• Retail Treasury Bonds (RTB) -  are medium-term government securities and maturities and 3, 5 and 7 year.  RTB is paid on quarterly coupons.

• Fixed Rate Treasury Note (FRTN) - this are medium to long term government securities with maturities ranging two years to to 25 years. FRTN is paid on quarterly coupons.
• Republic of the Philippine Bonds (RBP)- this are Philippine bonds denominated in foreign money (USD, EUR, and JPY). ROP is paid in semi annual coupon.
• Zero Coupon Bonds (Zeroes) - are government securities with maturities from 5, 7 to 10 years. zeroes are sold at a discount on issue date and pay out the phase value  upon maturity date.

If you are interested in investing in bonds, you may contact BPI Asset Management for more information in bond investment.