short-term debt securities

Short-term debt securities are financial instruments that companies or governments issue to raise funds they plan to repay quickly, typically within one year. Investors buy these securities, such as Treasury bills or commercial paper, essentially lending money for a short period. In return, the issuer promises to pay back the full amount plus interest by the maturity date. These securities are considered low-risk, highly liquid investments, suitable for preserving capital and earning modest returns over a brief timeframe. They are commonly used to manage cash flow needs or improve liquidity.