Government securities worldwide - statistics & facts

Government investing and government-backed securities are important tools, aiding in the function of the global economy and local financial systems. Government back securities are debt instruments issued by a local government. Due to the nature of these securities, they are considered to be lower risk than other financial securities. This particularly applies to bonds issued by the U.K. government or to American bonds inclusive of the dollar-denominated green bonds as the markets for these bonds are extremely liquid. As a result of this, many government investment funds such as public pension funds (PPFs) allocate a sizable portion of their portfolio to fixed-income and treasury securities.

Government funds

State-owned investment funds are an essential tool for improving the local economy and society. The two primary fund types are Sovereign Wealth Funds (SWFs) and PPFs. These funds are initially financed by the state with the aim of becoming profitable. PPFs are used to provide local citizens with a pension upon retirement, the Government Pension Investment Fund (GPIF) is one of the world`s leading PPFs and has become self-sustainable through cumulative investment income generated through effective portfolio management. SWFs worldwide are also managed on behalf of the state in order to create a profit. The revenues generated by SWFs are utilized to aid in stabilizing the local economy and in uplifting the local society by funding local initiatives.

Government bonds

Government bonds play a vital role in the local and global economy. Government-issued bonds can aid the national budget in times of a funding deficit. Municipal government bonds are issued to gain funding for specific projects such as new infrastructure, and green bonds are similar in nature being utilized to fund environmental projects. Bonds are also an important tool used in controlling money supply. Upon purchasing a government bond, the investor loaned money to the local government. In return, the investor will receive their money back at face value plus additional interest payments. Due to bonds being backed by the state, there is a low risk of default. However, the rates of return are lower than other financial securities. Typically, bonds are a fixed-rate investment. However, the yield on government bonds globally may be affected if the rate of inflation increases.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 18, 2023

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