issued by subsidiaries (federal agencies) of the United States government. Federal agency securities are not always guaranteed by the
Treasury; hence the slang terminology of "FANGs" (Federal Agency Nonguaranteeds)
is sometimes used to refer to such securities.
Such securities range from 14 to 20 years in maturities.
They are issued in minimum denominations of $1,000 are sold with
coupongs, and are bearer instruments, negotiable and marketable except
for specific issues. FANGs carry a favorable rate differential to U.S. Treasury
securities of the same maturity and are attractive to depository financial
institutions. No federal
security has ever defaulted. Isn
recent years, special funding has been required for the Farm Credit Administration
and the Federal Savings and Loan Insurance Corporation. Many of the issues are listed regularly in the financial pages.