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Stock impact report

FHLB sells first-ever SOFR-based bonds [Reuters (UK)]

Barclays PLC (BCS) 
Company Research Source: Reuters
FHLB sells first-ever SOFR-based bonds | Reuters 2 Min Read Nov 13 (Reuters) - The Federal Home Loan Banks on Tuesday sold its first-ever bonds tied to the Secured Overnight Financing Rate (SOFR), which is an alternative to the London interbank offered rate (LIBOR) that may cease to exist after 2021. The U.S. mortgage finance agency’s $4 billion two-part deal will settle on Thursday. The offering’s $1.5 billion six-month tranche was priced at a spread of 4 basis points above SOFR, while the $2.5 billion 12-month tranche was priced at a spread of 6.5 basis points over SOFR, the Office of Finance said in a statement. Barclays Capital Inc, Nomura Securities International Inc, and Wells Fargo Securities LLC were the lead managers of FHLB’s debut SOFR-linked deal. Loop Capital Markets LLC and The Williams Capital Group, L.P. were the co-managers. FHLB’s sibling Fannie Mae began issuing SOFR-linked notes earlier this year. Toyota and MetLife recently raised money with SOFR-based securities Show less Read more
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