************************************** FEDERAL AGENCY - TopicsExpress



          

************************************** FEDERAL AGENCY NOTES: Some agencies of the federal government issue both short-term and long-term obligations, including the loan agencies Fannie Mae and Sallie Mae. These obligations are not generally backed by the government, so they offer a slightly higher yield than T-bills, but the risk of default is still very small. Agency securities are actively traded, but are not quite as marketable as T-bills. Corporations are major purchasers of this type of money market instrument. SHORT TERM TAX-EXEMPTS: These instruments are short-term notes issued by state and municipal governments. Although they carry somewhat more risk than T-bills and tend to be less negotiable, they feature the added benefit that the interest is not subject to federal income tax. For this reason, corporations find that the lower yield is worthwhile on this type of short-term investment.
Posted on: Fri, 16 May 2014 09:50:30 +0000

Trending Topics



Recently Viewed Topics




© 2015