Description
Government Agency Securities are debt obligations issued by U.S. Government Sponsored Enterprises such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). While Government Agency Securities are not backed by the full faith and credit of the U.S. Government, most have credit lines with the U.S. Treasury and are afforded the highest credit ratings.
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Benefits
Enjoy tax-advantaged income and lower investment risk when diversifying your investment portfolio.
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Features
Income from interest and repayment of principal is generally regarded with a high degree of safety, second only to U.S. Treasury Securities.
Income from some, but not all, Government Agency Securities is free from state and local income taxes.
Government Agency Securities offer yields that are generally higher than comparable Treasury Securities due to the slight increase in credit risk.
If circumstances change, Government Agency Securities are actively traded in the secondary market. You are not locked in until the bond's maturity.
You receive monthly payments of interest and principal.
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Related Products/Services
Certificate of Deposit
Collateralized Mortgage Obligations
Defined Portfolios
Mortgage Pass-Through Securities
Municipal Securities
Preferred Securities
U.S. Treasury Securities
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Government Agency Securities