Agency securities


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Related to Agency securities: Corporate bonds, Federal agency securities

Agency securities

Securities issued by federally related institutions and U.S. government-sponsored entities. Such agencies were created to reduce borrowing costs for certain sectors of the economy, such as agriculture.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Agency Securities

1. Debt instruments issued by government sponsored entities, especially mortgage-backed securities from Ginnie Mae, Fannie Mae, and Freddie Mac, and the Federal Home Loan Banks. Because each of those organizations is sponsored by the U.S. government, agency securities are implicitly guaranteed, and, in the case of Ginnie Mae, are backed by the full faith and credit of the United States. As such, agency securities have historically had high credit ratings, though they were criticized for an alleged role in the 2007-08 credit crunch.

2. An alternative term for government sponsored entities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The chart below shows the Federal Reserve's holdings of agency securities along with the agency securities used as collateral in tri-party repos.
The sale of Dresdner Bank's Global Agency Securities Lending business is part of Commerzbank's strategy to focus on its core markets and activities.
Government and agency securities, and to arrange corresponding sale and repurchase agreements between its own account and foreign and international accounts maintained at the Bank.
government agency securities, smaller-sized bank obligations or low credit-rated corporate investment vehicles.
Treasury and agency securities levels had been declining since 2005, but the recession reversed the trend.
In addition, precisely the better capitalized banks in recent years have been acquiring the bulk of liquid Treasury and agency securities. This pattern, in turn, seems to reflect that it has been the banks with high risk-based capital ratios that also have had relatively high leverage ratios and have been most able to grow and accommodate deposit inflows.
Treasury and agency securities sufficient to pay the debt service on the bonds.
Treasury purchases continued through the end of October 2009, and the agency securities were purchased throughout the first quarter of 2010.
government and federal agency securities. These assets, which include government-guaranteed collateralized mortgage obligations and mortgage pass-through securities, rose nearly 24 percent.
The Company amortizes and accretes premiums and discounts associated with purchases of agency securities into interest income over the estimated life of such securities based on actual and projected CPRs using the effective yield method.
In addition to the largely anticipated maturity extension program announced by the Federal Open Market Committee (FOMC) in September, the Committee altered its reinvestment strategy on agency securities. Instead of reinvesting principal payments and prepayments from agency debt and agency mortgage-backed securities (MBS) in Treasury securities, the new directive is for those funds to be reinvested in agency MBS.
AGNC expects to use the net proceeds from this offering to finance the acquisition of agency securities, non-agency securities (including credit risk transfer securities), other mortgage-related assets and hedging instruments and for other general corporate purposes.

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