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agency security

agency security

6.7
An investment sold by a United States government agency or the Farm Credit System
  • noun
  • /ˈeɪdʒənsi sɪˈkjʊrɪti/
  • Specialized
translation icon : valor de agencia
  • We've asked for agency security, but for some curious reason, Denny Carmichael won't supply it.

Examples

  • Many retirement accounts include agency securities as a stable investment option.

  • Investors often choose agency securities for their relatively low risk compared to corporate bonds.

  • Government-backed loans are often funded by issuing agency securities through federal programs.

Synonyms

security
vsagency security
  • Specialized
126 5.8

A share, bond, or similar item that people buy and sell to invest money

is specific to issues from particular US federal bodies and the Farm Credit System
government security
vsagency security
  • Specialized
1 4.0

A bond or note that a government sells to borrow money

is limited to issues from specific US federal bodies and the Farm Credit System

Surface Forms

Morphology

agency + security

The phrase simply combines 'agency' (an authorized organization, here a government agency) with 'security' (a financial instrument), so its meaning — a financial security issued by an agency — is directly derivable from the constituents. Although it is a domain-specific financial term, the composition is literal and mirrors equivalent constructions in many languages, so a B1 learner who knows both words can reasonably infer the meaning.

Etymology

Agency security comes from a simple image: agency is a government office that acts for people, and security is a financial 'bond' or 'loan' you can buy. Because these bonds are made or backed by government agencies, people see them as more 'safe' than private investments, so today agency security means a financial bond issued by a US government agency or the Farm Credit System.