federal agency securities

Definition

Debt instruments issued by federal credit agencies. These securities are fully backed by the U.S. government guarantee but not by its full faith and credit. These securities have a very high credit rating - second only to Treasury bonds - and have maturity periods from one month to 15 years. Their yields vary the way that market conditions, maturities, size of the issue, and tax status vary. Sold by a nationwide group of banks and dealers, these securities raise money to fund public needs such as road building, low-cost housing, urban renewal, and also to provide low interest rate loans to farmers, small business owners, and veterans.
The agencies that can issue these securities include Federal Home Loan Bank, Federal Home Loan Mortgage Association (Freddie Mac), Federal National Mortgage Association (Fannie Mae), and Federal Farm Credit Bureau.

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The federal agency securities were really cool for them and we thought everything was really interesting and liked what was issued.

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FEDERAL AGENCY SECURITIES Debt instruments issued by federal credit agencies. These securities are fully BACKED by the U.S. government guarantee but not by its full faith and credit. These SECURITIES have a very high credit rating - second only to Treasury bonds - and have maturity periods from one month to 15 years

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Zack was familiar with federal agency securities and he was very much at ease with their relative security, so much so that he was willing to recommend them to clients.

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federal agency bond Federal Agricultural Mortgage Corporation