Agency debt

Short description: US government security

Agency debt, also known as an agency bond, agency loan, agency security, or "Agencies", is a security, usually a bond, issued by a United States government-sponsored enterprise or federal budget agency. The offerings of these agencies are backed but not guaranteed by the US government.[1] Some prominent issuers of these securities are the Federal Home Loan Banks (FHLBanks), Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).[2]

## Issuers and guarantees

Agency debt may be issued either by federal government agencies or by government-sponsored enterprises (GSEs), and the degree of federal backing depends on the issuer. FINRA notes that agency securities carry the full faith and credit of the United States only when they are issued or guaranteed by a federal government agency, such as Ginnie Mae. By contrast, securities issued by GSEs such as Fannie Mae and Freddie Mac are not, by virtue of that status alone, direct obligations of the U.S. government.[3]

The Federal Reserve likewise distinguishes between “government-sponsored enterprise debt securities” and federal agency mortgage-backed securities in its descriptions of open market operations and balance sheet assets, reflecting the different legal status of those instruments.[4]

## See also

* Mortgage-backed security
* United States Treasury security

## References

1. ↑ "Federal Reserve Flow of Funds". Federal Reserve. March 6, 2014. http://federalreserve.gov/releases/z1/Current/.
2. ↑ "The Treasury Market Practices Group". Federal Reserve Bank of New York. January 17, 2013. http://www.newyorkfed.org/tmpg/.
3. ↑ "Bonds". https://www.finra.org/investors/investing/investment-products/bonds.
4. ↑ "Background on Selected Assets". https://www.federalreserve.gov/monetarypolicy/bsd-background-202008.htm.

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Bond market

* Bond
* Debenture
* Fixed income

Types of bonds by issuer|

* Agency bond
* Corporate bond
* Senior debt
* Subordinated debt
* Distressed debt
* Emerging market debt
* Government bond
* Municipal bond

Types of bonds by payout|

* Accrual bond
* Auction rate security
* Callable bond
* Commercial paper
* Consol
* Contingent convertible bond
* Convertible bond
* Exchangeable bond
* Extendible bond
* Fixed rate bond
* Floating rate note
* High-yield debt
* Inflation-indexed bond
* Inverse floating rate note
* Perpetual bond
* Puttable bond
* Reverse convertible securities
* Zero-coupon bond

Bond valuation|

* Clean price
* Convexity
* Coupon
* Credit spread
* Current yield
* Dirty price
* Duration
* I-spread
* Mortgage yield
* Nominal yield
* Option-adjusted spread
* Risk-free bond
* Weighted-average life
* Yield curve
* Yield spread
* Yield to maturity
* Z-spread

Securitized products|

* Asset-backed security
* Collateralized debt obligation
* Collateralized mortgage obligation
* Commercial mortgage-backed security
* Mortgage-backed security

Bond options|

* Callable bond
* Convertible bond
* Embedded option
* Exchangeable bond
* Extendible bond
* Puttable bond

Institutions|

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