Agency debt
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Agency debt is debt issued by federal agencies. Agency debt is not officially backed by the full faith and credit of the U.S. government, but investors assume that the government implicitly guarantees this debt, so these bonds carry interest rates only slightly higher than Treasury bonds.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Agency debt. Debt issued by federal agencies. Agency debt is not officially backed by the full faith and credit of the U.S. government, but investors assume that the government implicitly guarantees this debt, so these bonds carry interest rates only slightly higher than Treasury bonds.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
