Agency debt can be a compelling alternative proposition for some Treasuries in a high quality fixed income portfolio, though the decision hinges on investor’s desire to sell convexity and liquidity, notes Morgan Stanley. In their September 26 research piece titled “The Debenture Code,” Jay F Bacow and team delve deep into the agency debenture market to explore issuance and valuation. Outstanding agency debt stands at about $2.1 trillion Bacow and colleagues highlight that agency debt or debentures are issued by government-sponsored entities, though they are not backed explicitly by the government. They point out that the largest debt issuances are…
“Agency Debt – A Good Alternative For Some Treasuries”: Morgan Stanley
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports