Agency Securities Definition

Dictionary of Financial Terms

Agency securities are bonds and notes issued by government-sponsored enterprises, or GSEs, including Fannie Mae, Freddie Mac and the Federal Home Loan Bank. They are the highest-quality debt instruments after Treasury securities.

Don't confuse agency securities with mortgage-backed securities, some of which are issued by the same entities. Agency securities are a variety of spread product and are evaluated as such.

Definitions of Financial Terms