Held-To-Maturity (HTM) securities are fixed-income investments held until they reach their maturity date. HTM securities are typically held in a portfolio to generate stable and consistent long-term returns. Unlike traded securities, HTM securities are not actively bought and sold on the open market.

The most common example of HTM securities are treasury bonds and corporate bonds. These investments are typically bought and owned until they reach maturity. Upon maturity, the investor receives the principal and the pre-determined accumulated interest. Because of the predictability of HTM securities, they are attractive to investors looking for steady income.

While the principal and accrued interest are secured, HTM investments are not risk-free investments, as there is the risk that the issuer defaults on the interest or principal payments. For this reason, investors should conduct careful research on the issuer before investing. Additionally, although HTM assets are not actively traded, investors should consider changes in the market and the issuer’s financial condition before deciding to buy and hold HTM assets.

Held-to-Maturity (HTM) securities are generally considered a low-risk investment. Unlike speculative investments, they are believed to offer a certain degree of stability if held until maturity. However, the predictable returns of these investments may not be as lucrative as other forms of investments in the short-term.

Investors may also consider the liquidity consideration of HTM assets. If a HTM asset needs to be sold prior to maturity, the investor may not realize the full amount of the investment as the price of the asset could change due to market fluctuations.

Overall, HTM securities are an attractive investment for those seeking a reliable and predictable stream of income. Investors should be aware of potential risks and liquidity considerations related to these investments before deciding to purchase and hold HTM securities