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What Are Agency Debentures?

By Kristi Waterworth – Updated Sep 8, 2025 at 11:43PM

Key Points

  • Agency debentures are low-risk bonds issued by U.S. government agencies or GSEs.
  • Interest from government agency debentures may be tax-exempt, enhancing potential returns.
  • GSE-issued debentures lack a government guarantee, posing slightly higher risks.
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