{"id":28021,"date":"2024-02-26T13:58:27","date_gmt":"2024-02-26T13:58:27","guid":{"rendered":"https:\/\/swoopfunding.com\/us\/?post_type=business-glossary&#038;p=28021"},"modified":"2025-04-24T14:06:12","modified_gmt":"2025-04-24T14:06:12","slug":"agency-bonds","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/us\/business-glossary\/agency-bonds\/","title":{"rendered":"Agency bonds"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong>Definition<\/strong><\/h3>\n\n\n\n<p>Agency bonds are debt securities issued by government-sponsored enterprises or federal agencies in the United States.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What are agency bonds?<\/strong><\/h3>\n\n\n\n<p>These bonds are typically issued to finance specific public-sector projects or to support activities that serve a public purpose. Agency bonds typically have fixed <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/interest-rate\/\">interest rates<\/a>, semi-annual interest payments, and maturities ranging from a few months to several decades. They are considered relatively safe investments because they are backed by the issuing agency&#8217;s, and in some cases, by the U.S. government&#8217;s implicit or explicit guarantee.<\/p>\n\n\n\n<p>Agency bonds are actively traded in the secondary market, allowing investors to buy and sell them on stock exchanges or <a href=\"https:\/\/swoopfunding.com\/us\/business-glossary\/over-the-counter-otc\/\">over-the-counter (OTC)<\/a> platforms. They are popular among investors seeking steady income and relative safety.<\/p>\n\n\n\n<p>While agency bonds are generally considered low-risk investments due to their backing by government-sponsored entities or federal agencies, they are not risk-free. Investors should assess the creditworthiness of the issuing agency as well as the specific terms and conditions of the bond.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Example of agency bonds<\/strong><\/h3>\n\n\n\n<p>ABC Corporation wants to finance its mortgage lending operations, so it issues mortgage-backed securities, a government-sponsored enterprise. Investors purchase these MBS, effectively providing funding to ABC Corporation.<\/p>\n\n\n\n<p>Each MBS represents a share of a pool of mortgages owned by ABC Corporation. As homeowners make their mortgage payments, the cash flows are passed through to the MBS holders and provide investors with a steady stream of income in the form of interest payments.<\/p>\n","protected":false},"author":1,"template":"","class_list":["post-28021","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>Definition Agency bonds are debt securities issued by government-sponsored enterprises or federal agencies in the United States. What are agency bonds? These bonds are typically issued to finance specific public-sector projects or to support activities that serve a public purpose. Agency bonds typically have fixed interest rates, semi-annual interest payments, and maturities ranging from a few months to several decades. They are considered relatively safe investments because they are backed by the issuing agency&#8217;s, and in some cases, by the U.S. government&#8217;s implicit or explicit guarantee. Agency bonds are actively traded in the secondary market, allowing investors to buy and&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/us\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary\/28021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/us\/wp-json\/wp\/v2\/media?parent=28021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}