Instrumentality

Definition:

Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of the government, even though the agency's responsibilities are not necessarily those of the US government.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

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Trade at a narrow speed or no spread in basis points relative to some other bond yield, usually Treasury bonds.

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