By Investment U Research Team If you’re familiar with government treasuries, you’ve also likely heard of agency bonds. What is an agency bond? These bonds come from a government-backed entity and typically pay a higher interest rate than treasuries. However, they’re not always backed by the full faith and credit of the United States government. Agency bonds tend to be a popular debt equity for larger funds because their rate of return tends to be better than treasuries.
Agency bonds aren’t something most individual investors hold, since they’re issued in increments of $5,000, starting with a $10,000 investment. Most pay a semi-annual fixed coupon, in …read more
