What is an Agency Bond?
An agency bond is a type of security that is issued by a properly authorized and recognized financial entity by the government, with similar functions to those of a United States Treasury Bond. In effect, agency bonds are another example of a way of making a relatively safe investment, with an excellent opportunity of reaping a small increase in profits as the bond matures. Here are some examples of how an agency bond works, as well as some of the government-sponsored organizations that are authorized to issue the bonds. While an agency bond is issued by a financial agency that is not under the control of the government, each sponsored agency is required to operate under specific regulations that are issued by the United States government. Among the better known agencies that are authorized to issue an agency bond are the Federal National Mortgage Association, known popularly as Fannie Mae. Other popular agencies are the Student Loan Marketing Association, known as Sallie Mae, and the
