When you're a big dog like the
federal government and want to issue bonds or T-Bills, you can guarantee your
bonds with all the cash of the government (like the major moolah in the Federal
But what happens when you’re a medium-sized dog... like a government agency?
If you’re Fannie Mae or another government agency, and the government won’t guarantee
your bonds, you can issue agency bonds. You have to pay a slightly higher
interest rate than the Fuzz, but you get cash by issuing bonds. Booya.