Floating Rate Bonds
Farm Credit Floating Rate Bonds are high-credit quality, variable-rate bonds issued as needed. Farm Credit Floating Rate Bonds may be linked to SOFR, T-Bills, Prime and Fed Funds. Farm Credit is the largest agency issuer of floating rate bonds linked to Fed Funds and the Prime Rate.
Floating Rate Bonds can help manage investment risk typically associated with short-term money market instruments.
Floating Rate Bonds Details
| Offered | Farm Credit System interest conveyed daily / reverse inquiry | Denomination | $1,000 minimum $1,000 increments |
|---|---|---|---|
| Program Rating | Fitch: AA+/F1+ Moody's: Aaa/P-1 Standard & Poor's: AA+/A-1+ |
Settlement | 5-7 business days |
| Risk Weighting | 20% BIS | Typical Index | SOFR, T-Bills, Prime and Fed Funds |
| Program Maturity Range | 1-30 years | Day Count | Actual/360, Actual/Actual (index dependent) |
| Typical Maturity | 1-3 years | Payment Frequence | Monthly, Quarterly, Semi-annually |
| Call Feature | Where applicable, notice of redemption of called bonds will be provided by the Funding Corporation on behalf of the Banks of the Farm Credit System no fewer than five business days prior to a Redemption Date. | Method of Issuance | Window / Posted |