Agency securities, also known as Government Sponsored Enterprises (GSEs) are privately owned but federally chartered companies. While they enjoy certain competitive advantages as a result of their government charters, their debt obligations are unsecured and are not direct obligations of the U.S. Government. However, debt securities issued by GSEs are considered to be of high credit quality and the senior debt of GSEs is AAA rated.

The wide range of GSE-issued debt securities and programs offer investors the opportunity to:

GSEs raise funds through a variety of debt issuance programs, including:

With the variety of GSE-issued debt securities and programs available, investors may benefit from a unique combination of high credit quality, liquidity, pricing transparency and cash flows that can be customized to closely match their objectives.

Your Financial Advisor will help you determine if agency securities are an appropriate investment for you.





Fixed income securities are subject to market risk and interest rate risk. If sold in the secondary market prior to maturity, investors may experience a gain or loss depending on interest rates, market conditions and the credit quality of the issuer.

Market Risk/Interest Rate Sensitivity - GSE debt obligations are subject to market value fluctuations given changes in interest rates. Because of this interest rate sensitivity, the sale price received for the security may be lower if interest rates have risen since it was originally purchased. If sold prior to maturity, yield and principal may vary.

Limited Call Protection - In many cases, agency securities are redeemable at the issuer's option within a relatively short time frame. If the securities are called, the investor may be faced with a reinvestment decision earlier than anticipated.