39
What is a FHLB Bond Issuance?
A Federal Home Loan Bank (FHLB) bond issuance is the process of issuing bonds by one or more of the 12 regional banks that make up the Federal Home Loan Banks System. These bonds are backed by mortgage-related assets held in escrow, and provide investors with an attractive yield for their investments. The proceeds from these issuances are typically used to finance housing projects, fund affordable housing initiatives, or invest in other community development activities. In addition to providing a steady stream of income for investors, FHLB bond issuances help support local economies by increasing access to capital and encouraging investment in low-income neighborhoods.
