| agency security | |
noun | |
| a security issued by United States government agencies or the Farm Credit System [syn: government security] |
Agency Security
Low risk debt obligations issued by enterprises that the U.S. Government sponsors.
Investopedia Commentary
Agency securities are similar to U.S. Treasury Bills in that they pay interest and have low default risk. However, the main differences are that they are not backed entirely by the U.S. Government and the interest income is taxed differently.
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See also: Government Security, T-bill