Government and Agency Securities

Government and agency securities matter on the Series 7 because they combine product distinctions, credit backings, yield conventions, mortgage-market structure, and tax treatment. Candidates need to separate direct Treasury obligations from agency and GSE issues, then understand how mortgage-backed products extend that market.

This chapter keeps those topics in four stronger sections so the public TOC reflects how representatives actually compare these securities in customer conversations and exam scenarios.

In this section

• U.S. Treasury Securities
  Compare Treasury bills, notes, bonds, and TIPS, including structure, backing, and market use.
• Agency and GSE Securities
  Differentiate federal agencies, government-sponsored enterprises, and the main securities they issue.
• Mortgage-Backed Securities
  Study pass-throughs, CMOs, prepayment risk, extension risk, and other core mortgage-backed concepts.
• Tax Considerations of Government Securities
  Review the federal, state, and local tax treatment of Treasury, agency, and related government securities.