U.S. government agencies issue bonds to finance activities supported by public policy. These agencies include the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Bank, to name just a few. These issuers make credit available to sectors of the economy that may not otherwise be able to afford the costs of financing
Although these agencies are not backed by the same "faith and credit guarantee" of Treasuries, their credit quality is generally considered very excellent because of their US Government-sponsored status. However, the Government Agencies offer much higher yields than Treasuries. This market functions with an excellent level of efficiency and liquidity due to the high degree of demand. Interest received from these investment products is subject to federal income taxes, and exemption from state taxes varies from state to state and from agency to agency.
If you are interested in Federal Agency and Taxable Bond Offerings, please email us at firstname.lastname@example.org or call us at 1-800-223-3881 and a Stoever Glass representative to assist you.
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