April 10th, 2008
Choosing The Right Kind Of Government Bond
Debt securities issued by the US Treasury, the US government sponsored enterprises, the US government agencies, and the US government enterprises are one of the world’s most liquid bond markets and also one of the world’s largest bond markets. Treasury securities cover the lowest risk in the bond market as they are guaranteed by the US governments taxing authority. Treasury securities are used to finance the federal government debt whereas government sponsored enterprises and government agencies issue debt to enable Americans to own homes. In this way they support their role in financing mortgages.