Agencies

Overview


Government Sponsored Enterprises, known as GSEs, are privately owned corporations created by Congress to provide funding and help to reduce the cost of capital for certain borrowing sectors of the economy such as homeowners, students and farmers. GSE securities are generally perceived to carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. It is important to note that although GSEs are commonly referred to as “Agencies”, there is a difference between a Government Sponsored Enterprise and a Government Agency.

For investors able to accept less security than direct U.S. Government backing, highly rated U.S. Agencies offer a combination of high quality, attractive yields and good liquidity. A wide range of structures, most notably Callable Agencies, offer both individual and institutional investors potential for higher yields and interest payment options.

Financial professionals looking for more information on Incapital's capabilities in offering new issue and secondary Agencies, please call (561) 361-1100.