The Bank makes short-term investments in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold, and makes other investments in debt securities, which are classified as either trading, AFS, or HTM.

The Bank invests in interest-bearing deposits, securities purchased under agreements to resell, and federal funds sold to provide short-term liquidity. These investments are generally transacted with counterparties that have received a credit rating of triple-B or greater (investment grade) by an NRSRO. At December 31, 2025 and 2024, none of these investments were with counterparties rated below triple-B; however, as of December 31, 2025 and 2024, approximately 40 percent and 34 percent were secured securities purchased under agreements to resell with unrated counterparties.

Federal funds sold are unsecured loans that are generally transacted on an overnight term. Finance Agency regulations limit the amount of unsecured credit the Bank may extend to a counterparty. At December 31, 2025 and 2024, no allowance for credit losses was recorded for interest-bearing deposits and federal funds sold, as all assets were repaid or expected to be repaid according to their contractual terms. The carrying values of interest-bearing deposits and federal funds sold exclude accrued interest receivable of $15 million and $17 million at December 31, 2025 and 2024.

Securities purchased under agreements to resell are secured, short-term, and are structured such that they are evaluated regularly to determine if the market value of the underlying securities decreases below the market value required as collateral (i.e., subject to collateral maintenance provisions). If so, the counterparty must place an equivalent amount of additional securities as collateral or remit an equivalent amount of cash, generally by the next business day. Based upon the collateral held as security and collateral maintenance provisions with its counterparties, the Bank determined that no allowance for credit losses was needed for its securities purchased under agreements to resell at December 31, 2025 and 2024. The carrying value of securities purchased under agreements to resell excludes accrued interest receivable of $2 million and $1 million at December 31, 2025 and 2024.

The Bank invests in debt securities, which are classified as either trading, AFS, or HTM. The Bank is prohibited by Finance Agency regulations from purchasing certain higher-risk securities, such as equity securities and debt instruments that are not investment quality. A security is considered to be investment quality if it has adequate financial backing so that full and timely payment of principal and interest is expected and there is minimal risk that the timely payment of principal and interest would not occur because of adverse changes in economic and financial conditions during the projected life of the security. Exceptions are allowed for certain investments targeted at low-income persons or communities, and instruments that experienced credit deterioration after their purchase by the Bank.


	For the Years Ended December 31,
	2025		2024		2023
Net unrealized gains (losses) on trading securities held at period-end	$	82	$	18	$	67
Net gains (losses) on trading securities no longer held at period-end	15		—		26
Net gains (losses) on trading securities	$	97	$	18	$	93


	December 31, 2025
	Amortized Cost1		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Non-mortgage-backed securities
Other U.S. obligations2	$	14	$	—	$	—	$	14
GSE and Tennessee Valley Authority obligations	280		30		—		310
State or local housing agency obligations	369		2		(1)		370
Other3	18		1		—		19
Total non-mortgage-backed securities	681		33		(1)		713
Mortgage-backed securities
U.S. obligations single-family2	5,683		25		(1)		5,707
GSE single-family	217		1		(1)		217
GSE multifamily	20,755		152		(25)		20,882
Total mortgage-backed securities	26,655		178		(27)		26,806
Total	$	27,336	$	211	$	(28)	$	27,519


	December 31, 2024
	Amortized Cost1		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Non-mortgage-backed securities
Other U.S. obligations2	$	102	$	—	$	—	$	102
GSE and Tennessee Valley Authority obligations	285		24		—		309
State or local housing agency obligations	504		1		(6)		499
Other3	41		1		—		42
Total non-mortgage-backed securities	932		26		(6)		952
Mortgage-backed securities
U.S. obligations single-family2	5,192		13		(5)		5,200
GSE single-family	197		—		(2)		195
GSE multifamily	19,037		45		(98)		18,984
Total mortgage-backed securities	24,426		58		(105)		24,379
Total	$	25,358	$	84	$	(111)	$	25,331

1 Amortized cost includes adjustments made to the cost basis of an investment for accretion, amortization, and/or fair value hedge accounting adjustments, and excludes accrued interest receivable of $89 million and $86 million at December 31, 2025 and 2024.

The following tables summarize AFS securities with gross unrealized losses by major security type and length of time that individual securities have been in a continuous unrealized loss position (dollars in millions). In cases where the gross unrealized losses for an investment category are less than $1 million, the losses are not reported.


	December 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities
Other U.S. obligations1	$	7	$	—	$	3	$	—	$	10	$	—

State or local housing agency obligations	82		(1)		123		—		205		(1)
Total non-mortgage-backed securities	89		(1)		126		—		215		(1)
Mortgage-backed securities
U.S. obligations single-family1	181		—		488		(1)		669		(1)
GSE single-family	—		—		71		(1)		71		(1)
GSE multifamily	216		—		3,831		(25)		4,047		(25)
Total mortgage-backed securities	397		—		4,390		(27)		4,787		(27)
Total	$	486	$	(1)	$	4,516	$	(27)	$	5,002	$	(28)


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Non-mortgage-backed securities
Other U.S. obligations1	$	—	$	—	$	21	$	—	$	21	$	—

State or local housing agency obligations	108		(1)		347		(5)		455		(6)

Total non-mortgage-backed securities	108		(1)		368		(5)		476		(6)
Mortgage-backed securities
U.S. obligations single-family1	995		(4)		808		(1)		1,803		(5)
GSE single-family	45		—		85		(2)		130		(2)
GSE multifamily	3,325		(10)		7,587		(88)		10,912		(98)
Total mortgage-backed securities	4,365		(14)		8,480		(91)		12,845		(105)
Total	$	4,473	$	(15)	$	8,848	$	(96)	$	13,321	$	(111)

The following table summarizes AFS securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):




	December 31, 2025				December 31, 2024
Year of Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities
Due in one year or less	$	11	$	11	$	88	$	88
Due after one year through five years	47		49		234		236
Due after five years through ten years	224		227		212		210
Due after ten years	399		426		398		418
Total non-mortgage-backed securities	681		713		932		952
Mortgage-backed securities	26,655		26,806		24,426		24,379
Total	$	27,336	$	27,519	$	25,358	$	25,331


	December 31, 2025
	Amortized Cost1		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities
GSE and Tennessee Valley Authority obligations	$	124	$	8	$	—	$	132
State or local housing agency obligations	21		1		—		22
Total non-mortgage-backed securities	145		9		—		154
Mortgage-backed securities
U.S. obligations single-family2	1		—		—		1

GSE single-family	299		—		(4)		295
Private-label	2		—		—		2
Total mortgage-backed securities	302		—		(4)		298
Total	$	447	$	9	$	(4)	$	452


	December 31, 2024
	Amortized Cost1		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
Non-mortgage-backed securities
GSE and Tennessee Valley Authority obligations	$	358	$	6	$	(2)	$	362
State or local housing agency obligations	29		—		—		29

Total non-mortgage-backed securities	387		6		(2)		391
Mortgage-backed securities
U.S. obligations single-family2	2		—		—		2

GSE single-family	369		—		(7)		362
Private-label	2		—		—		2
Total mortgage-backed securities	373		—		(7)		366
Total	$	760	$	6	$	(9)	$	757

The following table summarizes HTM securities by contractual maturity. Expected maturities of some securities may differ from contractual maturities, as borrowers may have the right to call or prepay obligations with or without call or prepayment fees (dollars in millions):




	December 31, 2025				December 31, 2024
Year of Contractual Maturity	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Non-mortgage-backed securities
Due in one year or less	$	3	$	3	$	233	$	233
Due after one year through five years	27		28		12		12
Due after five years through ten years	69		74		72		73
Due after ten years	46		49		70		73
Total non-mortgage-backed securities	145		154		387		391
Mortgage-backed securities	302		298		373		366
Total	$	447	$	452	$	760	$	757

The Bank evaluates AFS and HTM investment securities for credit losses on a quarterly basis. The Bank’s AFS and HTM securities may include, but are not limited to, certificates of deposit, commercial paper, U.S. obligations, GSE and TVA obligations, state or local housing agency obligations, taxable municipal bonds, and MBS. The Bank only purchases securities considered investment quality. At both December 31, 2025 and 2024, over 99 percent of the Bank’s AFS and HTM securities, based on amortized cost, were rated single-A or above by an NRSRO, based on the lowest long-term credit rating for each security.

The Bank evaluates its individual AFS securities for impairment by comparing the security’s fair value to its amortized cost. Impairment may exist when the fair value of the investment is less than its amortized cost (i.e., in an unrealized loss position). At December 31, 2025 and 2024, certain AFS securities held by the Bank were in an unrealized loss position. These losses are considered temporary as the Bank expects to recover the entire amortized cost basis on these AFS investment securities and neither intends to sell these securities nor considers it more likely than not that it will be required to sell these securities before its anticipated recovery of each security’s remaining amortized cost basis. In addition, substantially all of these securities are high-quality GSE securities or carry an explicit government guarantee. In the case of GSE securities, they are purchased under an assumption that the issuers’ obligation to pay principal and interest on those securities will be honored, taking into account their status as GSEs. As a result, no allowance for credit losses was recorded on these AFS securities at December 31, 2025 and 2024.