Consolidated Obligations

3 Months Ended

Mar. 31, 2020

Consolidated Obligations

Consolidated obligations consist of bonds and discount notes. The FHLBanks issue consolidated obligations through the Office of Finance as their agent. Bonds are issued primarily to raise intermediate- and long-term funds for the Bank and are not subject to any statutory or regulatory limits on their maturity. Discount notes are issued primarily to raise short-term funds for the Bank and have original maturities of up to one year. Discount notes sell at or below their face amount and are redeemed at par value when they mature.

Although the Bank is primarily liable for the portion of consolidated obligations issued on its behalf, it is also jointly and severally liable with the other FHLBanks for the payment of principal and interest on all FHLBank System consolidated obligations. The Finance Agency, at its discretion, may require any FHLBank to make principal and/or interest payments due on any consolidated obligation, whether or not the primary obligor FHLBank has defaulted on the payment of that consolidated obligation. The Finance Agency has never exercised this discretionary authority. At March 31, 2020 and December 31, 2019, the total par value of outstanding consolidated obligations of the FHLBanks was $1,174.7 billion and $1,025.9 billion.

DISCOUNT NOTES

The following table summarizes the Bank’s discount notes (dollars in millions):



	March 31, 2020					December 31, 2019
	Amount			Weighted Average Interest Rate		Amount			Weighted Average Interest Rate
Par value	$	33,114		1.08	%	$	29,592		1.65	%
Discounts and concessions¹	(43		)			(61		)
Total	$	33,071				$	29,531


1	Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation discount notes.

BONDS

The following table summarizes the Bank’s bonds outstanding by contractual maturity (dollars in millions):



	March 31, 2020					December 31, 2019
Year of Contractual Maturity	Amount			Weighted Average Interest Rate		Amount			Weighted Average Interest Rate
Due in one year or less	$	53,646		1.08	%	$	58,106		1.81	%
Due after one year through two years	14,221			1.82		16,997			1.91
Due after two years through three years	3,961			2.30		3,907			2.35
Due after three years through four years	2,841			2.64		3,083			2.53
Due after four years through five years	3,415			2.96		3,503			3.03
Thereafter	5,753			2.87		5,777			3.00
Total par value	83,837			1.52	%	91,373			1.99	%
Premiums	231					217
Discounts and concessions¹	(35		)			(38		)
Fair value hedging adjustments	233					1
Total	$	84,266				$	91,553


1	Concessions represent fees paid to dealers in connections with the issuance of certain consolidated obligation bonds.

The following table summarizes the Bank’s bonds outstanding by call features (dollars in millions):



	March 31, 2020		December 31, 2019
Non-callable or non-putable	$	80,454	$	87,246
Callable	3,383		4,127
Total par value	$	83,837	$	91,373

The following table summarizes the Bank’s bonds outstanding by year of contractual maturity or next call date (dollars in millions):



Year of Contractual Maturity or Next Call Date	March 31, 2020		December 31, 2019
Due in one year or less	$	55,514	$	60,639
Due after one year through two years	15,104		17,643
Due after two years through three years	4,443		4,410
Due after three years through four years	2,746		2,788
Due after four years through five years	3,385		3,376
Thereafter	2,645		2,517
Total par value	$	83,837	$	91,373