U.S. Agency Bonds

U.S. Agency Bonds are debt issued by a Federal Agency or a government-sponsored enterprise (GSE). Agencies include Ginnie Mae, Fannie Mae, Freddie Mac, Sallie Mae and the Federal Home Loan Banks. Agency bonds or debentures are not backed by collateral, but by the integrity and credit worthiness of the issuer. Agency debentures issued by a GSE are backed only by that GSE's ability to pay. GSE's can borrow directly from the U.S. Treasury and have mandated Congressional charters and missions.

Agency Bonds and Debentures may be an attractive investment alternative to investors seeking yields superior to Treasury Bonds or Notes and their principal and interest payments secured by the Issuer. Ginnie Mae, Freddie Mac, and Fannie Mae were all set up to buy mortgages from financial institutions, like banks.  These mortgages are pooled together and sold to investors as mortgage backed pools.  These pools or bonds thus raise additional capital for the agency to replenish its resources to make additional mortgage loans. 

Please contact your APS Financial Representative for a more extensive listing of current Agency Bonds, Notes, and Debentures including Sallie Mae, World Bank, and FHLB.

• U.S. Agency Bond Offerings