How Bond Agents Work – Financial Magazine

The world of fixed-income financial securities, this is probably one of the best investments you make.

The agency bonds are typically compared with treasury or T-bonds for their high liquidity and lower risk. However, a variety of entities issue agency bonds, contrary to T-bonds in which government agencies like the U.S. Treasury issues them. Agency bonds can be purchased not just from the government, but also from corporations that were granted the right to charter by the federal government.

Sometimes referred to as an agency debt, agency bonds may be issued by any department within the federal government other than that of the U.S. Treasury. These bonds can be purchased from an entity sponsored by the federal government. Take note, however this is different from U.S. Treasury and municipal bonds, certain of the security options do not come with the full assurance.

Be aware that interest rates represent another potential risk with these bonds. An investor might purchase bonds, only to realize that interest rates are rising. Its true spending power diminishes.

This video from Zions TV is extremely informative. It will help you understand everything you need to know regarding bonds issued by agencies. This video will help you learn how to buy agency bonds and where they can be purchased.


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