OVERVIEW
The Funding Corporation manages a variety of debt issuance programs that are designed to satisfy the financing and risk management needs of the Banks of the Farm Credit System while being responsive to market changes and investor demand. To meet those diverse needs, a broad array of maturities and structures of Farm Credit Systemwide debt securities may be offered each day through the programs outlined in the table below.
Regardless of program, structure or size, all Farm Credit debt securities are highly rated: Standard & Poor’s Ratings Service rates us AA+/A-1+, Moody’s Investors Service rates us Aaa/P-1, and Fitch Ratings rates us AAA/F1+.
The debt securities are not obligations of, nor are they guaranteed, by the U.S. government or any Federal agency or instrumentality. They are the joint and several obligations of the four Banks of the Farm Credit System. In addition, the debt is insured by the Farm Credit System Insurance Corporation.
Our bonds and notes are marketed and traded in the capital markets with the support of our group of 29 selected dealers. The debt securities are purchased by a wide variety of investors in the United States and throughout the world, and are risk weighted at 20% by the Bank for International Settlements.
Farm Credit Debt Securities are generally exempt from state, local and municipal tax on bond and note interest (please consult your tax advisor for specific information). The bonds and notes are generally maintained and transferred on the Federal Reserve book-entry, with the exception of Retail Bonds, which are cleared through the Depository Trust Company.
Updated information on bond and note offerings can be found on Bloomberg FFCB1
| Discount Notes | Designated Bonds | Floating Rate Bonds | Fixed Rate Bonds | Retail Bonds |
|
|---|---|---|---|---|---|
| Offered | Daily / reverse inquiry | Quarterly (as needed) | As needed / reverse inquiry / System interest conveyed daily | As needed / reverse inquiry / System interest conveyed daily | Weekly |
| Program Rating | A-1+ S&P P-1 Moody’s F1+ Fitch |
AA+ S&P Aaa Moody’s AAA Fitch |
AA+ S&P Aaa Moody’s AAA Fitch |
AA+ S&P Aaa Moody’s AAA Fitch |
AA+ S&P Aaa Moody’s AAA Fitch |
| Risk Weighting | 20% BIS | 20% BIS | 20% BIS | 20% BIS | 20% BIS |
| Program Maturity Range | 1-365 days | 1-30 years | 1-30 years | 1-30 years | 1-30 years |
| Typical Maturity | Overnight, 5 days - 2 months |
2-10 years (non-callable) |
1-5 years | 1-5 years | 2-10 years |
| Call Feature | N/A | If callable, European | If callable, American, Bermudan, European 3 month and longer lockouts | If callable, American, Bermudan, European 3 month and longer lockouts | If callable, American, Bermudan, European 3 month and longer lockouts |
| Denomination | $1,000 minimum $1,000 increments | $1,000 minimum $1,000 increments | $100,000 minimum $1,000 increments |
$1,000 minimum $1,000 increments | $1,000 (fixed rate), $100,000 (floating rate) minimum; $1,000 increments |
| Settlement | Cash/Regular | 3-5 business days | 5-7 business days | 5-7 business days | 3-5 business days |
| Typical Index | N/A | N/A | LIBOR, Prime, T-Bills, Fed Funds |
N/A | If floating rate, LIBOR, Prime, T-Bills, Fed Funds |
| Day Count | Actual/360 | 30/360 | Actual/360, Actual/Actual (index dependent) | 30/360 | 30/360 (fixed rate) index dependent (floating rate) |
| Payment Frequence | At maturity | Semi-annually | Monthly, Quarterly, Semi-annually | Semi-annually | Monthly, Quarterly, Semi-annually - on the 15th of the month |
| Method of Issuance | Customer orders filled on first come/first served basis | Syndicate | Auctioned/Negotiated | Auctioned/Negotiated | Offerings posted weekly |