About Discount Notes
| Discount Note Detail | |
|---|---|
| Offered | Daily |
| Denomination | $100,000 Minimum $1,000 Increments |
| Program Rating | P-1 Moody’s A-1+ S&P |
| Settlement | Cash / Regular / Skip |
| Typical Index | N/A |
| Program Maturity Range | 1 to 365 / 366 Days |
| Day Count | Actual / 360 |
| Payment Frequency | At Maturity |
| Call Feature | N/A |
| Method of Issuance | Window / Auction |
| Clearance | Fed Book Entry, unless otherwise specified in the applicable Supplement |
| The above represents typical terms only. Terms are subject to change and investors should refer to the applicable offering document for specific terms. | |
Federal Home Loan Banks consolidated discount notes (DN) offer investors short-term securities (one year or less) to meet portfolio objectives. All Federal Home Loan Banks DNs are exempt from state and local income tax for domestic U.S. investors. Federal Home Loan Banks DNs are characterized by competitive rates, efficient trade execution, and responsiveness to reverse inquiries. The size and term of DNs available for sale on a given day are dependent on the Federal Home Loan Banks' funding needs.
Federal Home Loan Banks DNs are sold subject to a minimum of $100,000 and $1,000 increments. After issuance, DNs can be traded in the secondary market through securities dealers and banks.
Rates and Maturities
DNs will be offered on a continuous basis and will have maturities of 365 / 366 days or less, with the largest volume typically in the one- to 90-day range. Federal Home Loan Bank DNs will generally be offered on a discounted basis, but may also be offered on a premium basis or at par, using the actual number of days to maturity divided by 360. Upon maturity, the par value of the note is paid in full.
Purchase
DNs will be offered into the market through the window or through regularly scheduled competitive auctions. DNs issued through the window are priced daily and distributed through Federal Home Loan Banks Authorized Dealers. Rates and maturity categories for both window and auctioned DNs are evaluated frequently throughout a given day and announced publicly through major wire services. This information is also posted in the DN Window Rates and DN Auctions pages of this website. Investors interested in purchasing Federal Home Loan Banks DNs should contact their financial services provider.
Settlement and Delivery
DNs are generally available with same-day, next-business-day, and-two-or-more-business-day settlement. DNs are issued in Fed book-entry form and are transferred through Fedwire.
Disclosure
DNs are issued pursuant to and are subject to the Information Memorandum, as supplemented or amended from time to time and in effect at the time of the relevant offering and sale. The dealer should provide this document to investors prior to or at settlement.
