Payden U.S. Government Fund (PYUSX)

Overview

The company described focuses on investing exclusively in a portfolio of U.S. government obligations. This includes a wide range of securities entirely backed by the full faith and credit of the United States government. The investment strategy is focused on providing investors with a secure and possibly low-risk investment option by concentrating on government-issued or -guaranteed assets. This approach leverages the inherent safety and reliability associated with U.S. government securities, targeting investors seeking stability in their investment portfolios.

Products and Services

• U.S. Treasury Bills, Notes, and Bonds

  These are fixed-income securities issued by the U.S. Department of the Treasury with varying maturities. Treasury bills are short-term securities maturing in a year or less; notes have maturities ranging from two to ten years; and bonds have the longest maturity, exceeding ten years. These instruments are considered among the safest investments since they are backed by the full faith and credit of the U.S. government.

• Government National Mortgage Association Mortgage-Backed Securities (Ginnie Mae MBS)

  These are debt securities representing part ownership in a pool of mortgage loans. Specifically, Ginnie Mae MBS are backed by the full faith and credit of the U.S. government, providing a higher level of security compared to other mortgage-backed securities. They offer monthly income generated from the underlying mortgages, including principal and interest payments.

• Government-Sponsored Enterprises (GSEs)

  This includes bonds and obligations issued or guaranteed by entities such as Fannie Mae and Freddie Mac. While these investments involve some level of risk as they are not directly backed by the full faith and credit of the U.S. government, they are considered implicit government obligations due to the critical role these enterprises play in the national housing finance system. Investments in GSEs typically offer higher yields compared to U.S. Treasury securities, reflecting the slightly increased risk level.