Agency securities. Agency securities are the obligations of federal gov- ernment agencies or government-sponsored enterprises. Generally, agency debt offers a slight yield premium over T-bills. Turn back to Chapter 6 for more on agency securities. Commercial paper. Commercial paper, or CP, is issued by corporations (including banks) to finance short-term cash needs. While smaller corpo- rations usually depend on bank loans for this type of funding, larger cor- porations with good credit ratings can access the CP market and often do so. By raising money from investors directly rather than from a bank, these companies can lower their borrowing costs
