FHLBanks Surpasses $500 Billion in SOFR-Related Issuances
WASHINGTON–(BUSINESS WIRE)–The Federal Home Loan Banks Office of Finance announced today that the Federal Home Loan Bank System has issued more than $500 billion in SOFR-linked bonds since its first SOFR-linked issuance in November 2018.
“With this week’s bond issuance, our SOFR-linked issuance now exceeds $500 billion. As a leader in the market’s transition away from LIBOR, SOFR-linked bond issuance is a key funding tool for FHLBanks to meet the current and future needs of their members,” said Randy Snook, CEO of the Office of Finance. “This milestone is indicative of strong investor demand and acceptance SOFR, the new benchmark rate on our market.”
FHLBanks provide reliable liquidity to approximately 6,600 member financial institutions to support housing finance and community investment. The FHLBanks play a key role in supporting the continued development of a SOFR-linked debt market.
“The ability to issue SOFR-linked bonds is crucial for federal mortgage lending banks to maintain access to capital markets. These funds allow us to fulfill our mission to be a trusted partner for our members of all sizes across the country,” said Kris Williams, President and CEO of Federal Home Loan Bank of Des Moines. “As the Federal Home Loan Bank System celebrates its 90and anniversary As a fundamental part of the nation’s financial system, our ability to serve our members has never been more important.
The FHLBanks have been providing innovation and service to the US housing market since 1932 and currently has approximately 6,600 members serving all 50 states, the District of Columbia and US territories. Please contact Tom Heinle at 703-467-3646 or [email protected] for more information.
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