The Agency market is comprised of notes and bonds issued by Federal Agencies, also known as Government Sponsored Enterprises (GSEs). Agency issuers include:

  • Federal National Mortgage Association (Fannie Mae)
  • Federal Home Loan Mortgage Corporation (Freddie Mac)
  • Federal Home Loan Bank System (FHLB)
  • Federal Farm Credit Bureau (FFCB)
  • Tennessee Valley Authority (TVA)
  • Federal Agricultural Mortgage Credit Association (Farmer Mac)

Agency securities are considered to be of high credit quality but they are not guaranteed by the full faith and credit of the United States Government. Yields on Agency notes and bonds are usually somewhat higher than US Treasury obligations but lower than investment grade corporate securities of similar duration and structure. Agencies are sought after by investors seeking low credit risk while still desiring to receive a higher yield than that of a US Government instrument.