Non-Marketable Debt

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Non-Marketable Debt

A right to repayment of some debt that the holder may not trade. Generally, non-marketable debt may be redeemed by the issuer, but this is often subject to some limitations. Low-risk instruments such as savings bonds are examples of non-marketable debt.
References in periodicals archive ?
The reduction in benefits need reflect only slightly more than the nonmarketable debt no longer created by the federal government and its interest.
Likewise, when a trust fund runs a deficit, the government must buy back the nonmarketable debt using surpluses from elsewhere (should they exist), borrow from the public, or raise taxes.
Figure 2 shows the evolution of total (gross) federal debt, publicly held government debt, and nonmarketable debt since 1960, along with the CBO's projections through 2010.
The practice of issuing nonmarketable debt to trust funds was motivated by a desire to assure the public that the benefits that have been promised under specific programs will be forthcoming.
This is more than 12 times larger than the $855 billion in nonmarketable debt held by the OASDI trust fund in FY 1999.
5 percent compound annual growth rate), and that nonmarketable debt remains a constant 11.
However, the Social Security trust fund holds nonmarketable debt, leaving the Federal Reserve as the largest single player in the active Treasury markets.