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FHLB Issued $304B Last Week

US
  • Bloomberg reports that the FHLB System issued $304B in debt last week, according to a person familiar with the matter, almost double the $165B that lenders tapped from the Fed, providing a key lifeline for regional banks.
  • It follows earlier reports that the Monday saw $111.8B of issuance – the largest single day in its 90-year history – most of it advanced to community and regional banks, followed by a combined $136.5B in discount notes and bonds Tue-Wed.
  • The implied drop off over Thu and Fri suggests some stabilisation although regional banks remain under pressure today judging by First Republic’s further 45% decline on the day.

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