Definition

Noun: A type of debt security issued by specific United States government agencies or by institutions within the Farm Credit System. These are not direct obligations of the U.S. Treasury but are often considered to have a high degree of safety due to their association with the federal government.

Usage

This term is used specifically in the context of finance, investments, and government debt. It refers to the security itself as a financial instrument.

Examples

Advanced Usage

• Implied Guarantee: Although not explicitly backed by the full faith and credit of the U.S. government like Treasury securities, many agency securities carry an implied guarantee, which affects their perceived risk and yield.
• Secondary Market: Agency securities are actively traded in the secondary market, providing liquidity to investors.

Variants and Related Words

• Agency Bond: A common synonym for an agency security, emphasizing its nature as a bond.
• Government-Sponsored Enterprise (GSE) Security: A related term for securities issued by GSEs like Fannie Mae or Freddie Mac, which are a major category of agency issuers.
• Farm Credit System Security: A specific type of agency security issued by the cooperative Farm Credit System to support agriculture.

Synonyms

• Agency Bond
• Government Agency Security

Notes on Meaning

This term has a very specific, technical meaning in finance. It does not refer to: - The general concept of safety or protection provided by an agency (e.g., "the security agency"). - Physical security measures at an agency's building.

Noun

1. a security issued by United States government agencies or the Farm Credit System