Different entities may issue agency bonds. It is different to T-bonds which are issued by Treasury of the U.S. Treasury only issues the bonds. They can obtain agency bonds not only from the government, however also from corporations that were granted a charter by the government.

Also known as agency debt The term “agency bond” can be issued by a department of the federal government other than Treasury. U.S. Treasury. You can also get this security through an organization that is backed by the federal government. These security options are not guarantee-like U.S. Treasury or municipal bonds.

One thing to be aware of is that bonds also come with potential interest rate risk. Investors may purchase bonds only to discover that rates of interest are increasing. Its true spending power decreases.

This clip from Zions TV is extremely informative. It will show you everything you need to know about agency bonds. Also, you’ll learn where they are available and how agents from agencies can assist you with the purchase of bonds for your investment portfolio.

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