A Treasury bill is a promise by a government. A product where you invest with a company, and that company buys bills, is usually a promise by the company. The bills may be the company’s assets without being yours.
| Government bill you own | Claim on a company | |
|---|---|---|
| Who owes you | The government | The company |
| Main credit risk | The sovereign issuer | The company, and any of its creditors ahead of you |
| If the company fails | Your bill should be separately identifiable, depending on custody | You may be a creditor with no claim on specific bills |
| Return | Set by the price paid and face value | Set by the contract, and may differ from bill rates |
| Key document | Issuer terms and your custody agreement | The company’s contract with you |
How GetTbill separates them
The ledger keeps bills and contractual claims in different accounts, and a simulated subscription never shows up as ownership of a bill. A company’s purchase of a bill stays the company’s property. An internal allocation is only bookkeeping and does not transfer a security.
Key points
- First ask who owes you the money.
- A company holding bills does not make its obligation a government obligation.
- Backing is not the same as ownership.
General information only. It is not investment, legal or tax advice. Details vary by market and can change, so check the issuer’s current rules.