Government Sponsored Enterprise

(redirected from Government-Sponsored Entity)

Government Sponsored Enterprise

A privately held or publicly traded company created by the U.S. Government for some purpose thought to benefit the American economy. For example, Freddie Mac was originally a GSE created to encourage homeownership among middle class and working class Americans. Because it is "sponsored" but not owned by the government, GSE stocks carry higher risk than, say, Treasury securities, which are backed by the full faith and credit of the United States. However, GSEs have an implicit guarantee that the government will not allow them to fail. Indeed, when Fannie Mae and Freddie Mac collapsed in 2008 they almost instantly received federal assistance.
References in periodicals archive ?
Agency MBS have a guaranty of principal payment by an agency of the US government or a US government-sponsored entity, such as Fannie Mae and Freddie Mac.
Similarly, the formation of a government-sponsored entity, similar to Saudi Arabia's Public Investment Fund-backed Saudi Real Estate Refinance Company, could boost the secondary mortgage market.
--Debt backed by bonds issued or guaranteed by a government-sponsored entity (GSE);
Essentially, this is simply the government or a government-sponsored entity functioning as a lender for the business while the business is getting its feet off the ground financially.
AGNC Investment is an internally managed real estate investment trust that invests primarily in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a US government agency or a US government-sponsored entity.
In addition, it is expected that Ditech will sub-service, on behalf of, and under its existing sub-servicing agreement with, NRM, both the WCO MSRs and Ditech MSRs following the closing of the transactions contemplated in the MSRPSA and the related transaction documents, which transactions remain subject to various closing conditions, including government-sponsored entity approval.
Dave Camp's recent Tax Reform Act of 2014, or the recent Johnson-Crapo bill, which sought housing finance and government-sponsored entity (GSE) reform.
"MARC currently rates Danajamin at A/stable on the basis of the financial guarantee insurer's important role as a government-sponsored entity to facilitate greater corporate access to the domestic Sukuk and bond markets and the perceived high degree of support from the government in line with Danajamin's public policy objective, its adequate capital structure and liquidity profile.
Such a report is a critical stimulant in the debate over government-sponsored entity (GSE) reform and supports many of the arguments in NAA/NMHC's GSE reform proposal.
In 1976 Washington took over Penn Central and five other bankrupt railroads and folded them into a government-sponsored entity, Conrail.
Meanwhile, the Air Weapons Complex (AWC), another government-sponsored entity, during the last four years, has developed an air-defense automation system, said Amir Hussain Khan, a consultant and project manager.
Retail exposure in banks' securities portfolios is minimal; only 2% of portfolios in aggregate are invested in CMBS that do not carry a government or government-sponsored entity guarantee.

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