Agency Bond Explained: Meaning, Types, Process, and Risks
An **agency bond** is a debt security issued by a government agency or a government-sponsored enterprise, most commonly discussed in the U.S. fixed-income market. It often offers a higher yield than a comparable Treasury, but its legal backing, liquidity, and call features can be very different. If you want to understand bond-market risk beyond simple “safe vs risky” labels, agency bonds are one of the best places to start.