Government agency bonds. Any info?

[disneysteve]

I asked this in the muni bond thread but got no replies so I thought I'd try a separate thread.


Does anyone invest in government agency issues like Federal National Home Loan Bank, Federal Farm Credit Bank, Federal National Mortgage Association, etc?


It looks like they pay a bit higher than Treasuries of the same duration. Are they higher risk? Are they taxed differently? My mom has owned FNMA bonds for decades and they've always done well for her.

 

[COcheesehead]

I am not sure where you are screening your bonds, but at Fidelity if you click on the bond offering it will tell you everything about it including taxation.

 

[Montecfo]

There are GSEs which are not government guaranteed, and then Agency bonds which are. Agency bonds carry higher interest than Treasuries due to having less liquidity.

The ones you cite look like GSEs which carry an implicit government guarantee but not a statutory one.

Do your research and know what you are buying.