Advantages of Treasury Securities

Compared to alternative investment possibilities, Treasury Securities offer several advantages:

Yield: Treasury Securities, despite their being the safest investment alternative, offer a high yield, always in line with market interest rates when issuance takes place.

 - Creditworthiness of the issuer: Treasury Securities have the full guarantee of the Kingdom of Spain. The Spanish Constitution obliges the Spanish Government to honour its financial obligations vis-a-vis holders of Central Government Debt.

 - Liquidity: Treasury Securities are, among securities issued in Spain, by far the most liquid. This is due not only to their high outstanding volume, but also to the flexibility of the market for Treasury Securities. Thus, if the investor needs to liquidate his or her investment, he or she can do so at any moment, with great ease and relatively low costs.

 - The wide range of instruments among which the investor can choose, especially in regard to maturity: from very short maturities (through temporary purchases or repo transactions on Treasury Securities) to 30 years (by purchasing long-term Obligaciones del Estado).

 - The easy access to Treasury Securities: Treasury Securities can be purchased through practically any Spanish financial institution. Besides, it is possible to buy them through the Bank of Spain or through internet.