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- Corporate Bond
Corporate debt securities are obligations issued by corporations for capital and operating cash flow purposes.
- Municipal Securities
Municipal securities are debt obligations issued by states, cities, counties, and other governmental entities to raise money to build schools, highways, hospitals, and sewer systems, as well as many other projects for the public good. Municipal securities are the most important way that U.S. state and local governments borrow money to finance their capital investment and cash flow needs. An important distinguishing characteristic of the municipal securities market is the exemption of interest on municipal bonds from federal income taxes. The implicit subsidy provided by the federal government permits municipal issuers to compete effectively for capital in the domestic securities market.
- Treasury Securities
With currently $3.0 trillion in outstanding marketable Treasury debt, the U.S. Treasury securities market is the largest and most liquid market in the world. Three types of securities are issued: bills (maturity of less than 1 year); notes (maturity of 2 to 10 years); and bonds, which have a maturity of greater than 10 years.
- Asset-Backed Securities
Certificates, representing an interest in a pool of assets (credit card receivables, auto loans and leases, home equity loans). Interest and principal payments on the pool of assets are passed through to investors, typically institutional, who invest in highly rated, short-term liquid assets.
- Federal Agency Securities
Federal agency debt is issued by various government-sponsored enterprises (GSEs) which were created by Congress to fund loans to borrowers such as homeowners, farmers and students. Through the creation of GSEs, the government addressed various public policy concerns about the ability of members of these groups to borrow sufficient funds at affordable rates. Most GSEs rely primarily on debt financing for their day-to-day operations. Among the most active issuers of agency debt securities are: Federal Farm Credit System Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Student Loan Marketing Association (Sallie Mae) and Tennessee Valley Authority (TVA).
- Money Market Instruments
Money market instruments include bankers acceptances, certificates of deposit, and commercial paper. Bankers acceptances are typically used to finance international transactions in goods and services, and certificates of deposit (CDs) are large denomination negotiable time deposits issued by commercial banks and thrift institutions. Commercial paper is short term unsecured promissory notes issued by both financial and non-financial corporations.
- Trade Associations
Provide Information detailing the particular segment of the industry they represent, targeted at both industry professionals and the retail public. This compilation of trade association websites contain statistical, research, regulatory, legislative and educational information.
- Mortgage Securities
Represent an ownership interest in mortgage loans made by financial institutions (savings and loans, commercial banks, or mortgage companies) to finance the borrower's purchase of a home or real estate. Mortgage securities are created when these loans are packaged ("pooled") by issuers or servicers for sale to investors. As the underlying mortgage loans are paid off, investors receive payments of interest and principal. The majority of mortgage securities are issued and/or guaranteed by an agency of the U.S. Government, the Government National Mortgage Association (Ginnie Mae), or by government-sponsored enterprises such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Some private institutions, such as subsidiaries of investment banks, financial institutions, and home builders, also package various types of mortgage loans and mortgage pools. The securities they issue are known as "private-label" mortgage securities, in contrast to "agency" mortgage securities issued and/or guaranteed by Ginnie Mae, Fannie Mae, or Freddie Mac.
- Repurchase/Securities Lending
Repurchase agreements (repos) are widely used as a source of financing by primary dealers, other securities firms, banking firms, and institutional investors, among others. A repo involves an agreement between a seller and a buyer, typically of U.S. government securities but increasingly involving other types of securities and financial assets as well, whereby the seller "sells" the securities to the buyer, with a simultaneous agreement to repurchase the securities at an agreed upon price at a future point in time. A reverse repurchase agreement is the flip side of the transaction, with the buyer "buying" the securities from the seller and simultaneously agreeing to resell them at a future point in time.
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