AGENCY SECURITY

Debt obligations with a low-risk nature issued by some federally related bodies and by U.S. government-sponsored entities (GSEs). GSEs, including Federal Home Loan Bank; Student Loan Marketing Association (SLMA); and Federal National Mortgage Association (FNMA), are the ones that issues the agency securities. These different entities were created for the purpose of reducing the cost that is associated with borrowing for some areas of the economy which includes the farmers, students, and homeowners.