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What are Agency Bonds: Definition and Types

By Kristi WaterworthUpdated Sep 8, 2025 at 11:38 PM

Key Points

  • Agency bonds offer higher interest rates with moderate safety, excluding Treasury-issued bonds.
  • Types of agency bonds include those from federal agencies and GSEs like Fannie Mae.
  • Investing in agency bonds can stabilize a portfolio and offer tax exemptions.

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