Series 65 Securities

corporate securities

debentures, guaranteed bonds, income bonds, mortgage bonds, equipment trust certificates (ETCs), collateral trust certificates (CTCs)

US government securities

treasury bills, treasury notes, treasury bonds, STRIPS, treasury recepits

municipal securities

general obligation bonds (GOs), revenue bonds

debenture

A long-term, unsecured bond backed only by the issuer’s credit (no collateral)

Guaranteed Bond

An unsecured bond backed by a third party (e.g., a parent company guarantees the bond of a subsidiary).

Income Bond

A risky bond issued by companies in or emerging from bankruptcy

Mortgage Bond

A secured bond backed by real estate or property.

Equipment Trust Certificate (ETC)

A secured bond backed by equipment (e.g., planes, trains)

What is a Collateral Trust Certificate (CTC)

A secured bond backed by marketable securities or investments held in a trust

Treasury Bill (T-Bill)

A short-term, zero-coupon bond sold at a discount — pays face value at maturity.

Treasury Note (T-Note)

A 2–10 year U.S. bond that pays semiannual interest

Treasury Bond (T-Bond)

A long-term (30-year) U.S. bond paying semiannual interest

STRIP

A zero-coupon Treasury bond sold at a deep discount, very volatile, taxed yearly (phantom tax), backed by the U.S. government

Treasury Receipt

A zero-coupon bond created by broker-dealers, not backed by the government, phantom taxed, and very volatile

TIPS

A Treasury bond that adjusts par value with inflation and pays semiannual interest

General Obligation (GO) Bond

A tax-backed bond (usually from property taxes) used for public projects. No collateral

Revenue Bond

supports bonds that make revenue, self-supporting. example: toll roads, airports, staudiums, zoos