Office of Finance
The Office of Finance is the centralized debt facility for the Federal Home Loan Bank. The Office of Finance raises money through the daily sale of debt securities in the global capital markets. The FHLBanks issue discount notes in maturities ranging from one day to one year. Bond maturities of six months to 30 years are offered, with the majority of issues between one and five years. Issue size can range from several million to several billion dollars. FHLBank debt is sold through a broad, international network of approximately 100 underwriters.
Buyers of debt securities issued by the FHLBanks represent the entire spectrum of domestic and international fixed-income investors, including commercial banks, central banks, investment managers, major corporations, pension funds, government agencies and individuals.
Both Moody’s and Standard & Poor’s give FHLBank a triple-A credit rating. In its July 2010 ratings analysis, S&P stated, “The “AAA” rating on the debt of the Federal Home Loan Bank (FHLB) System reflects the System's status as one of three housing GSEs, its important role as a primary liquidity provider to U.S. mortgage and housing market participants, its diverse global investor base that enables ample liquidity at low funding costs across maturities, and its excellent aggregate asset quality in its lending portfolio (advance business).”.
This support was evident through the financial crisis and the subsequent economic recession, as advances rose to a peak of $1.01 trillion in the third-quarter 2008 before falling gradually (about 52%) toward pre-crisis levels. Advances totaled $478.5 billion at the end of 2010.
© , Council of Federal Home Loan Banks