Agency Security

What Does Agency Security Mean?
Low risk debt obligations issued by enterprises that the U.S. Government sponsors.

Investopedia explains Agency Security
Agency securities are similar to U.S. Treasury Bills in that they pay interest and have low default risk. However, the main differences are that they are not backed entirely by the U.S. Government and the interest income is taxed differently.

Filed Under: Bonds, Fixed Income

Related Terms

Government Security
T-bill
Treasury Secretary
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