Wondering how bond agents can help you with your investment portfolio? Well, they can be your go-to guy if you want to invest in agency bonds. In the complex world of financial fixed-income securities, it’s probably the safest investment you can make.
With their high liquidity and low risk, agency bond is often compared to T-bonds or treasury bonds. However, a variety of entities issue agency bonds, unlike T-bonds, where only the U.
S. Treasury issues them. Apart from government agencies, you can also get agency bonds from corporations that the government has granted a charter.
Also referred to as agency debt, an agency bond can be issued by a department of the federal government other than the U.S. Treasury. You can also get this security from an enterprise sponsored by the government. Keep in mind, though, that unlike U.S. Treasury and municipal bonds, some of these do not have a full guarantee.
Another thing to remember is that these bonds are also subject to interest rate risks. For example, an investor may purchase these bonds and then discover that the interest rates have already increased. What happens is that the real spending power of the bond decreases.
Watch this extremely informational video by Zions TV, where you’ll discover everything you need to know about agency bonds and their purposes. You’ll also better understand where you can get them and how agency bond agents can help you purchase bonds to add to your investment portfolio.