Mandated Global Bonds
The Federal Home Loan Banks may strategically issue liquid “benchmark”-size bullet bonds (often referred to as mandated global bonds) to expand their pool of investors, while diversifying their funding sources.
New issues of mandated global bonds are generally syndicated and distributed through a marketing period, with maturity and dealer syndicate pre-announced based on pre-determined calendar issuance dates.
The pre-determined issuance dates for the Federal Home Loan Banks’ mandated global bonds are scheduled and published on a Global Calendar on the public website of the Office of Finance each year. The Federal Home Loan Banks may decide to issue one or more new mandated global bonds and/or one or more re-openings, or may forego issuance, for each of these predetermined dates.
Mandated global bonds may have maturities ranging from 1 to 30 years. Issue sizes can vary depending on investor demand and the Federal Home Loan Banks' funding needs. New issues of fixed-rate, non-callable bonds of $1 billion or more are the most common and may be reopened to meet additional demand. Mandated global bonds are typically USD-denominated.
Mandated global bonds are typically sold through a syndicate of dealers on a pre-determined Global Calendar date. Dealers for a particular issuance are determined at the sole discretion of the Federal Home Loan Banks and the Office of Finance.
Mandated global bonds are typically issued through Fedwire in book entry form when denominated in USD.
