NationMaster - Encyclopedia: Agency bond

Agency debt (sometimes referred to in plural as Agencies) is a type of bond issued by a corporation that is nominally independent of the government - though ownership may be public or private - but considered to be backed by the government, usually on a de facto basis. In finance, a bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity. ... De facto is a Latin expression that means in fact or in practice. It is commonly used as opposed to de jure (meaning by law) when referring to matters of law or governance or technique (such as standards), that are found in the common experience as created or developed without...

The most common issuers in the United States are the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), which are both heavily involved in the mortgage-backed securities market, and the Federal Home Loan Banks (FHLBanks), which issue significant amounts of debt [that are the joint and several liability of all 12 FHLBanks] to support the FHLBank mission of extending advances [secured loans] to it members [primarily the nations community banks]. The Federal National Mortgage Association (FNMA) (NYSE: FNM), commonly known as Fannie Mae, is a government sponsored enterprise (GSE) sponsored by the United States government. ... The Federal Home Loan Mortgage Corporation (FHLMC) NYSE: FRE, commonly known as Freddie Mac, is a government sponsored enterprise (GSE) sponsored by the United States Government. ... A mortgage-backed security (MBS) is a bond whose cash flows are backed by homeowners mortgage payements. ...

Categories: Bonds | Economics and finance stubs The bond market, also known as the debit, credit, or fixed income market, is a financial market where participants buy and sell debt securities usually in the form of bonds. ... A government bond is a bond issued by a national government denominated in the countrys own currency. ... A sovereign bond is a bond issued by a national government denominated in a foreign currency. ... In the United States, a municipal bond or muni is a bond issued by a state, city or other local government, or their agencies. ... A Corporate bond is a bond issued by a corporation, as the name suggests. ... Emerging Market Debt (EMD) is a term used to encompass bonds issued by less developed countries. ... In finance, a Fixed rate bond is a security issued by a government or a business corporation that pays a fixed amount of interest (coupon rate) on the face value (principal/par value) of the bond periodically (often every six months or annually) to the owner until a date certain... Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. ... Zero coupon bonds are bonds which do not pay periodic coupons, or so-called interest payments. ... Inflation-indexed bonds (also known as linkers) are bonds whose principal are indexed to inflation, cutting out inflation risk. ... Commercial paper is a money market security issued by large banks and corporations. ... An accrual bond is a fixed-interest bond that is issued at its face value and repaid at the end of the maturity period together with the accrued interest. ... An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long-term nominal maturity for which the interest rate is reset through a dutch auction. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... A convertible bond is type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. ... This article or section does not cite any references or sources. ... Bond valuation is the process of determining the fair price of a bond. ... Yield to maturity (YTM) is the yield promised by the bondholder on the assumption that the bond will be held to maturity, that all coupon and principal payments will be made and coupon payments are reinvested at the bonds promised yield at the same rate as invested. ... In economics and finance, duration is the weighted average maturity of a bonds cash flows or of any series of linked cash flows. ... In finance, convexity is a measure of the sensitivity of the price of a bond to changes in interest rates. ... Yield curve spread on a simple mortgage-backed security is the flat spread over the treasury yield curve required in discounting a pre-determined coupon schedule to arrive at its present market price. ... Option adjusted spread (OAS) is the flat spread over the treasury yield curve required to discount a mortgage-backed securitys volatile coupon payments to match its market price. ...