Government and Agency Securities
Government securities are backed by the full faith and credit of the United States, whereas federal agency securities are not. The agencies have a perceived tie to the federal government as institutions established under federal legislation, but carry greater credit risk than those guaranteed by U.S. government.
*As of September 2008, the Federal Housing Finance Agency became the conservator of two housing mortgage insurance agencies: Federal National Mortgage Corp. and Federal Home Loan Mortgage Corp. As such, the U.S. Treasury has committed to provide necessary funding to support the net worth of these agencies. How long the Treasury will continue this direct guarantee program is unknown.