A municipal bond backed by the full faith, credit, and “taxing power” of the issuing unit rather than the revenue from a given project.
Pass-through mortgage securities on which registered holders receive separate principal and interest payments on each of their certificates. Ginnie Mae I securities are single-issuer pools.
Pass-through mortgage securities on which registered holders receive an aggregate principal and interest payment from a central paying agent on all of their Ginnie Mae II certificates. Ginnie Mae II securities are collateralized by multiple-issuer pools or custom pools, which contain loans from one issuer, but interest rates that may vary within one percentage point.
The gradual reduction of risk within a portfolio based on the number of years to a target date, achieved by adjusting the allocation of assets to more conservative investments. It is typically used when referring to target-date mutual fund strategies.
The issuance platform used by most GSEs when issuing “global” debt into the international marketplace or a particular foreign market. Has same credit characteristics as nonglobal debt but is more easily “cleared” through international clearing facilities.
Selling privately held shares to new investors for the first time.
Financing entities created by Congress to fund loans to certain groups of borrowers, such as homeowners, farmers and students.
Debt issued by government-sponsored enterprises (GSEs)—those financing entities created by Congress to fund loans to certain groups of borrowers such as homeowners, farmers and students. Through the creation of GSEs, the government has sought to address various public policy concerns regarding the ability of members of these groups to borrow sufficient funds at affordable rates. There are organizational differences among the GSEs although all are established with a public purpose. All GSE debt is not guaranteed by the federal government. GSE-issued debt securities can be structured to offer investors fixed or floating interest rates. While the basic structures share many characteristics of non-structured fixed- or floating-rate debt, many variations are possible.
A special-purpose vehicle set up to issue fixed-rate capital securities and use the proceeds to purchase debt of the parent company. Investors who hold interests in the trust are taxed as if they owned pro rata undivided interests in the trust’s assets.
A measure of output from United States factories and related consumption in the United States. It does not include products made by U.S. companies in foreign markets.
Debt instrument sold in large denominations issued by Insurance Companies and often bought for retirement plans. The word guaranteed refers to the interest rate paid on the GIC; the principal is at risk. The company issuing the GIC makes the guarantee, not the U.S. Government.