government sponsored enterprise

Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Members of these sectors include students, farmers and homeowners.

Investopedia Says:
GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. For this reason, these securities will offer a yield premium over Treasuries. Some consider GSEs to be stealth recipients of corporate welfare.

Examples of GSEs include: Federal Home Loan Bank, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Farm Credit Bank, Resolution Funding Corporation, and The Student Loan Marketing Association.

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A quasi-governmental organization that is privately owned but was created by the government and retains certain privileges not afforded totally private entities.Example: Both the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation are government-sponsored enterprises that were created by the federal government but transferred to private owners. Both organizations have the implicit backing of the U.S. Treasury, which allows them to raise funds at lower interest rates than other private concerns.

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