0001564590-19-035706.txt : 20190927 0001564590-19-035706.hdr.sgml : 20190927 20190927133445 ACCESSION NUMBER: 0001564590-19-035706 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190927 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190927 DATE AS OF CHANGE: 20190927 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Federal Home Loan Bank of Topeka CENTRAL INDEX KEY: 0001325878 STANDARD INDUSTRIAL CLASSIFICATION: FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES [6111] IRS NUMBER: 480561319 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-52004 FILM NUMBER: 191120994 BUSINESS ADDRESS: STREET 1: 500 SW WANAMAKER ROAD STREET 2: PO BOX 176 CITY: TOPEKA STATE: KS ZIP: 66601-0176 BUSINESS PHONE: 785 233 0507 MAIL ADDRESS: STREET 1: 500 SW WANAMAKER ROAD STREET 2: PO BOX 176 CITY: TOPEKA STATE: KS ZIP: 66601-0176 8-K 1 ck0001325878-8k_20190927.htm 8-K ON FHFA LIBOR ANNOUNCEMENT ck0001325878-8k_20190927.htm

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

 

Date of Report (Date of Earliest Event Reported):

 

September 27, 2019

Federal Home Loan Bank of Topeka

 

(Exact name of registrant as specified in its charter)

 

Federally Chartered Corporation

000-52004

48-0561319

 

 

 

 

 

 

 

 

 

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

  

 

 

500 SW Wanamaker Road, Topeka, Kansas

 

66606

 

 

 

 

 

 

 

(Address of principal executive offices)

 

(Zip Code)

 

 

 

Registrant’s telephone number, including area code:

 

785.233.0507

Not Applicable

 

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 


Top of the Form

Item 8.01 Other Events.

On September 27, 2019, the Federal Housing Finance Agency (“FHFA”), the primary regulator of the Federal Home Loan Banks (“FHLBanks”), including the Federal Home Loan Bank of Topeka (the “FHLBank”), issued a Supervisory Letter to the FHLBanks providing among other things that, by March 31, 2020, the FHLBanks should cease entering into certain instruments referencing the London Interbank Offered Rate, or LIBOR,  that mature after December 31, 2021.  

A copy of the FHLBank’s notice to its members regarding the FHFA’s letter to the FHLBanks as well as a copy of the FHFA’s letter are included herein as Exhibits to this Current Report on Form 8-K.

The FHLBank is evaluating the potential impact, if any, of the Supervisory Letter on its financial condition and results of operations.  

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Letter from the FHLBank to its members dated September 27, 2019.

99.2 Supervisory Letter from the FHFA to the FHLBanks dated as of September 27, 2019.



Top of the Form

Exhibit Index

 

Exhibit No.

 

Description

 

 

 

99.1

99.2

 

Letter from the FHLBank to its members dated September 27, 2019.

Supervisory Letter from the FHFA to the FHLBanks dated as of September 27, 2019.

 

 

 

 

 


Top of the Form

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Federal Home Loan Bank of Topeka

  

 

 

 

 

September 27, 2019

 

By:

 

/s/ William W. Osborn

 

 

 

 

 

 

 

 

 

Name: William W. Osborn

 

 

 

 

Title: Senior Vice President and Chief Financial Officer

 

 

EX-99.1 2 ck0001325878-ex991_6.htm EX-99.1 LETTER FROM THE FHLBANK TO ITS MEMBERS DATED SEPTEMBER 27, 2019. ck0001325878-ex991_6.htm

 

Exhibit 99.1

 

FHLBank System Regulator Provides LIBOR Transition Guidance

The financial markets are preparing for the expected phase-out of the London Interbank Offered Rate (LIBOR) by the end of 2021.

As part of this transition, the Federal Housing Finance Agency (FHFA) recently issued a supervisory letter to all Federal Home Loan Banks (FHLBanks). The FHFA, which regulates the FHLBanks, has required that by March 31, 2020, the FHLBanks cease entering into new LIBOR referenced instruments with maturities beyond December 31, 2021. This change may impact certain FHLBank products with a LIBOR component, including convertible and other structured advances containing embedded optionality as well as adjustable rate advances that reference LIBOR. Additionally, some adjustable rate advances tied to alternative indexes are not yet available to members.

The transition away from LIBOR-reliant advances does not lessen the reliability of FHLBank advance funding as the FHLBank System currently issues debt and accesses derivatives tied to alternative reference rates. The financial markets are also evolving to allow us to counter some of these limitations and we will keep you informed.

The FHFA has also directed the FHLBanks to update their pledged collateral certification reporting requirements by March 31, 2020, in an effort to encourage members to distinguish LIBOR-linked collateral maturing past December 31, 2021.

The full letter from the FHFA is available for your reference on the FHFA site.

The 11 FHLBanks are participating in industry-wide efforts to facilitate an orderly transition to an alternative reference rate. Each FHLBank has developed a multi-year plan to reduce its LIBOR exposures over time.

As we prepare for this transition, we also want to ensure that you, our members, are as prepared as possible. Resources regarding the LIBOR transition are available on our website.

We will provide you with ongoing updates as new information and resources become available. If you have questions regarding this communication or would like more details on the LIBOR transition, please contact your regional account manager or the Lending department at 800.809.2733.

 

 

 

 

 

EX-99.2 3 ck0001325878-ex992_33.htm EX-99.2 SUPERVISORY LETTER FROM THE FHFA TO THE FHLBANKS DATED AS OF SEPTEMBER 27, 2019. ck0001325878-ex992_33.htm

 

 

Federal Housing Finance Agency

Constitution Center

400 7th Street, S.W.

Washington,  D.C. 20219

Telephone: (202) 649-3800

Facsimile: (202) 649-1071

www.fhfa.gov

 

 

 

To:

Federal Home Loan Bank Presidents and Chief Executive Officers President and Chief Executive Officer, Office of Finance

 

From:Andre D. Galeano, Deputy Director

Division of Federal Home Loan Bank Regulation Subject:Supervisory Letter - Planning for LIBOR Phase-Out Date:September 27, 2019

To ensure that the Federal Home Loan Banks (FHLBanks or Banks) will be able to identify and prudently manage the risks associated with the termination ofLIBOR in a safe and sound manner, the FHLBanks should, by March 31, 2020, no longer enter into new financial assets, liabilities, and derivatives that reference LIBOR and mature after December 31, 2021 for all product types except investments. For investments, the FHLBanks should, by December 31, 2019, stop purchasing investments that reference LIBOR and mature after December 31, 2021. The above phase-out dates do not apply to collateral accepted by the FHLBanks.

 

Each Bank should report to the Division of FHLBank Regulation (DBR) any new LIBOR-based transactions maturing after December 31, 2021 into which it enters. This reporting should be done on a month-end basis beginning with October 2019. Each Bank should encourage its members to distinguish collateral linked to LIBOR with maturies beyond 2021 by updating collateral certification reporting requirements by March 31, 2020.

 

Recognizing that there may be LIBOR-indexed, long-dated products that serve a compelling mission, risk-mitigating, and/or hedging purpose (e.g., swaptions) that do not currently have readily available alternatives, DBR requests the FHLBanks jointly submit a single list ofLIBOR­ indexed products maturing after 2021 that they would like to continue to use after March 31, 2020. This list should not include derivatives FHLBanks acquire to offset market risks from structured advances products. For each product submitted to DBR, the Banks should include a statement

 

 

1

 

 


 

 

 

 

Page 2

 

 

 

explaining how they will manage the risks the products present and how the products serve the mission of the FHLBanks.

 

If you have any questions, please contact your examiner-in-charge, Associate Director of Examinations, or Daniel E. Coates, Senior Associate Director and Chairman of the FHFA's Reference Rate Transition Steering Committee at Daniel.Coates@fhfa.gov or 202-649-3280.