Update on the 

Farm Credit System

Funding Conditions 
Recent Financial Headlines

“Eurozone Inflation Rate 

Rises to 10.7% as 

Recession Looms” – Surprisingly rapid increase in consumer prices underlines 

the challenges facing the European Central Bank

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Recent Financial Headlines

“Treasury Yields Surge as 

Global Central Banks 

Scramble to Respond to 

Fed, Inflation” 

3
Recent Financial Headlines

“Bank of England Raises Key 

Interest Rate by 0.75 Point”

- Hike takes rate to highest level since November 2008

4
Recent Financial Headlines

“Rocky Treasury-Market 

Trading Rattles Wall Street”

- Mounting illiquidity raises concerns over a key market’s 

functioning should a crisis erupt

5
Recent Financial Headlines

“Investors Are Clinging to 

Cash”

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Recent Financial Headlines

“Fed Approves Fourth 

0.75-Point Rate Rise, Hints 

at Smaller Hikes”

– Officials signal a possible slowdown in the pace of rate rises by 

acknowledging how increases influence the economy with a lag.

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Recent Financial Headlines

“Powell Emphasizes 

There’s ‘A Ways to Go’ on 

Rates”

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 Global Market 

 Agency Debt Market 

 Funding Corporation Activity

 Yields & Spreads on FCS Debt 

 FCS Liquidity

 LIBOR/SOFR

 War in Eastern Europe

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Funding Update Topics 
 Federal Reserve

 E.C.B., Bank of England, Bank of Japan 

 U.S. Treasury

 China

 War in Eastern Europe 

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Global Market 
Global Yields Increasing

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Credit Rating Agencies -

Outlook for the United States

 Standard & Poors – AA+ 

Outlook – Stable

 Moody’s – Aaa

Outlook – Stable

 Fitch – AAA 

Outlook – Stable

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Agency Debt Issuance

Source: Agency Websites

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Billions of Dollars 2018 2019 2020 2021 9/2022

F.H.L.B. $2,856 $2,739 $1,975 $1,467 $4,609 

FCS 308 364 421 415 298 

Fannie Mae 556 572 369 50 66 

Freddie Mac 412 558 465 22 56 

Total $4,133 $4,233 $3,230 $1,954 $5,029 
Agency Debt Outstanding

Source: Agency Websites

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Billions of Dollars 2018 2019 2020 2021 9/2022

F.H.L.B. $1,044 $ 1,005 $ 737 $653 $1,022 

FCS 280 292 322 353 378

Freddie Mac 274 254 284 182 168 

Fannie Mae 204 158 275 202 138

Farmer Mac 16 19 22 23 24 

Tenn. V.A. 23 22 21 21 21 

Total $1,941 $1,750 $1,661 $1,434 $1,751 
Source: FFCBFC Website

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Funding Activity by FCS

($ millions) Discount Notes Designated 

Bonds

Fixed Rate Bonds Floating Rate Bonds Retail 

Bonds

Other1 Total

Callable NonCallableLIBOR SOFR Prime, 

FF, 91-

day, 

10/31/2022 26,035 12,000 121,484 95,327 991 93,122 30,182 17 408 379,565

12/31/2021 24,280 9,100 104,071 100,600 2,141 79,747 32,797 20 151 352,906

12/31/2020 23,524 3,100 78,971 90,084 39,437 56,595 29,712 42 148 322,464

12/31/2019 17,459 0 77,903 79,068 80,613 7,957 28,657 122 159 291,938

12/31/2018 22,774 0 78,971 71,099 82,216 0 26,400 201 119 281,780

1 Includes Linked Deposits
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Designated Bonds

• GSE Benchmark Issue

• Five Issuances in 2022 YTD 

• $1 Billion, 2- & 3-year Maturities

• Barclays Aggregate Bond Index

• Dealer Performance/Investor Base 
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Designated Bond Investors
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Discount Note 
Dealer Group 

• 36 Dealer Group Members

• Mischler Financial Goup, Inc,. added in 

Sept. ‘22

– Leveraging Equality and Diversity (LEAD)

– 9 Overall LEAD Dealer Members 

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FCS Debt Yields Starkly Higher

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Increased Risk Premiums

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 As of 9/30/22 System = 172(163) days:

• AgFirst = 214(205) days, AgriBank = 159(131) 

days, FCB of TX = 171(164) days, CoBank = 

173(164)days 

 As of 12/31/21 System = 180 (174) days:

• AgFirst = 235(221) days, AgriBank = 158(146) 

days, FCB of TX = 185(173) days, CoBank = 

180(180) days 

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Days of Liquidity 
 Global U.S. LIBOR referenced instruments still abound. 

 8 mos. until ALL remaining LIBOR’s Tenors R.I.P. date.

 Secured Overnight Financing Rate Use Continues to Grow.

 System’s J & S LIBOR directly based debt down to $991 

million. No new issues. Synthetic derivative exposure notional 

amount $45.2 billion ($26.9 billion due after 6/23) as of 

September 30th versus $44.3 billion yearend ’21. 

 FCS issued just over $56.1 billion in SOFR indexed bonds for 

2022 as of Oct. 31st. Dominates FCS indexed debt with $95.3 

billion currently. 

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LIBOR/SOFR TRANSITION
Global Issue 

Ongoing Economic Shocks 

Long Term Impacts

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War in Eastern Europe
 Overall Strong Demand for FCS Debt, Varies by Type 

 FCS Debt Yields Have Moved Starkly Higher 

 FCS Risk Premiums Have Risen 

 Solid Secondary Liquidity though Adversely Impacted 

 LIBOR/SOFR Transition Progressing 

 War in Eastern Europe Wild Card

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Summary