Securities issued by federal credit agencies. Federal agency securities are fully guaranteed, whereas government-sponsored agency securities are not.
Issued by U.S. government agencies and sponsored corporations such as Fannie Mae, Freddie Mac and Ginnie Mae, these securities carry direct or implicit government backing, with credit quality second only to Treasury securities.
Sold to the investing public, these securities are not direct obligations of the United States but carry some form of government guarantee or sponsorship. Funds raised by sales of these securities provide specialized credit for a variety of public needs, including housing, urban renewal, small business, the shipping industry, and foreign trade.