# 🍿 Agency Bonds

**Published by:** [Let Them Eat Cake](https://paragraph.com/@ltecake/)
**Published on:** 2022-06-21
**URL:** https://paragraph.com/@ltecake/agency-bonds

## Content

TL,DR: Like popcorn from the boyscouts, agency bonds are lackluster products sold to support a larger enterprise Agency Bond / Boyscout PopcornIssued by national organizationsLower yield than Girlscout cookiesEatamology “Agency” refers to the government sponsored enterprises (GSE), also called government agencies, which issue bonds to raise money. Government agencies are permanent organizations within the federal government, created by the president, Congress, or the House of Representatives to serve a specific purpose. After being created these agencies can operate like any other private issuer, and can raise money via debt or equity. Financials The institutions that sell agency bonds use the proceeds to indirectly finance loans to homebuyers and farmers across the country. They borrow money from the general public in the form of agency bonds, and then lend that money to people looking for cash to buy homes or farms in the form of mortgages. A mortgage is just a loan used to fund the purchase of property. Fannie, Freddie, Farmer and Sallie Fannie Mae, also known as the Federal National Mortgage Association and Freddie Mac, the Federal Home Loan Mortgage Corporation, are two of the most popular issuers of agency bonds. They played a major role in the financial crisis of 2008 by financing subprime (low quality) mortgages. Lesser known agencies include Farmer Mac, the Federal Agricultural Mortgage Corporation, which lends money to farmers, ranchers, and other large acreage estates, and Sallie Mae, the Student Loan Marketing Association, which offer student loans. Investors can buy products in support any of these initiatives with the confidence that the agencies will never default due to their association with the U.S. government

## Publication Information

- [Let Them Eat Cake](https://paragraph.com/@ltecake/): Publication homepage
- [All Posts](https://paragraph.com/@ltecake/): More posts from this publication
- [RSS Feed](https://api.paragraph.com/blogs/rss/@ltecake): Subscribe to updates
- [Twitter](https://twitter.com/lte_cake): Follow on Twitter