They're backed by pools of mortgages and issued by different organizations. Fannie Maes are bonds issued by the quasi-public corporation Fannie Mae. A number of states also have mortgage loan corporations that sell bonds. Government agencies and government-sponsored enterprises issue bonds to fund specific projects or ongoing operations like mortgage lending, economic development or flood control.
Agency bonds have a double appeal for investors.
They pay higher interest than Treasurys, yet they're almost as safe. They're issued by full-fledged government agencies, like the Federal Housing Administration or the Federal Farm Credit Bank, or by agencies formerly operated by the government that are now public corporations like Fannie Mae. Prices are quoted as bid and asked . Like Treasury issues, the decimals refer to 32nds. Savings bonds are bearer bonds, which means that the person who has them can cash them.