One of the many benefits of buying a government bond is that it is generally the safest form of investment since the possibility of a government defaulting on its repayment is very low. In fact, the obligations of the Government of Trinidad and Tobago meet internationally recognized investment grade standards.  Few entities can boast of this status. Inclusion of such an instrument in a portfolio reduces the overall risk of an investor’s local portfolio because of the rating of the bond.

Since the terms of the bonds are medium- to long-term, individuals as well as institutions find it convenient to match certain expected expenditures (example for education, retirement, capital projects, etc.) with the maturity dates of these bonds. Government bonds pay interest half-yearly; holders have access to an income stream over the life of the bond.

Commercial banks also allow the use of Government of Trinidad and Tobago bonds as security for individuals and institutional borrowing. The major risk with government bonds, as with all other bonds, is that if holders want to sell them before they mature, this must be done at the market price. The market price may have moved up or down since purchase, depending on market interest rates. However, if the bond is held to maturity, the bondholder will receive the full amount of the investment.