FCS Funding Conditions 

Update and Analysis
Recent High Finance Headlines

“Stocks Suffer Biggest 

Weekly Losses Since 2008”

2
Recent High Finance Headlines

“The Week That Wiped $3.6 

Trillion Off the Stock Market”

3
Recent High Finance Headlines

“Federal Reserve Cuts Rates 

by Half Percentage Point to 

Combat Virus Fear” 

4
Recent High Finance Headlines

“Central Bank Lowers 

Federal-Funds Rate Range to 

1% to 1.25% in its First 

Between-Meeting Move Since 

the Financial Crisis”

5
Recent High Finance Headlines

“Yield on 10-Year Treasury 

Dips Below 1% for First Time 

in Sign of Anxiety”

6
Recent High Finance Headlines

“Congress Reaches $8 Billion 

Deal to Combat Coronavirus”

7
Recent High Finance Headlines

“Riyadh Prepares Emergency 

Budget for Oil at $12 to $20 a 

Barrel; ‘It’s all about egos 

now’”

8
Recent High Finance Headlines

“U.S. Treasury Likely to Push 

Back April 15 Tax Filing 

Deadline, Sources Say”

9
 Global Market 

 Agency Debt Market 

 Yields & Spreads on FCS Debt 

 Funding Corporation Activity

 FCS Liquidity

 LIBOR/SOFR

 Coronavirus

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Funding Update Topics 
 Federal Reserve

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

 U.S. Treasury

 China

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Global Market 
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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 Assets – $ 365.5 billion (+ 4.7%)

 Loans – $ 286.9 billion (+ 4.9%)

 A.L.L. – $ 1.8 billion (+ 5.4%)

 Cash & Invts. – $ 68.3 billion (+ 2.7%)

 Capital – $ 61.7 billion (+ 5.6%)

 Net Income – $ 5.4 billion (+ 2.1%)

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System High Level Financials 
Agency Debt Issuance

Source: Agency Websites

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Billions of Dollars 2015 2016 2017 2018 2019

F.H.L.B. $3,858 $4,389 $6,797 $7,855 $7,256 

Fannie Mae 247 655 710 556 509 

Freddie Mac 604 597 480 413 515 

FCS 298 334 278 308 364 

Total $5,007 $5,641 $8,265 $9,132 $8,644 
Agency Debt Outstanding

Source: Agency Websites

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Billions of Dollars 2015 2016 2017 2018 2019

F.H.L.B. $ 905 $ 989 $1,034 $ 1,032 $1,026 

FCS 242 258 265 282 294

Freddie Mac 418 356 317 255 283 

Fannie Mae 390 329 278 233 182

Tenn.V.A. 25 25 25 23 22 

Farmer Mac 14 15 16 16 19 

Total $1,994 $1,972 $1,935 $1,841 $1,826 
Funding Corp.’s Dealer Group

BNY Mellon Capital Mkts, LLC Mizuho Securities USA Inc.

Barclays Capital Inc. Morgan Stanley & Co. LLC

BofA Securities, Inc. Multi-Bank Securities, Inc.

Cantor Fitzgerald & Co NatWest Market Securities Inc.

Citigroup Global Mkts. Nomura Securities Inter. Inc.

Daiwa Capital Mkts. America Inc. Piper Sandler & Co. 

Deutsche Bank Securities Inc. RBC Capital Markets, LLC 

First Horizon Bank Raymond James & Associates 

Goldman, Sachs & Co. Robert W. Baird & Co. Inc.

HSBC Securities (USA) Inc. Stifel, Nicolaus & Company Inc.

INTL FCStone Fin. Inc. - BD Rates Div. SunTrust Robinson Humphrey Inc.

Incapital LLC TD Securities (USA) LLC

J.P. Morgan Securities LLC UBS Securities LLC

Jefferies LLC Vining-Sparks IBG, Ltd. Partnership

Loop Capital Mkts LLC Wells Fargo Securities, LLC 16
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, 

12/31/2019 19,098 0 77,903 79,068 80,613 7,957 28,657 122 159 293,577

12/31/2018 22,774 0 78,971 71,099 82,216 0 26,401 201 119 281,780

12/31/2017 25,632 1,000 72,228 67,144 79,425 0 19,775 210 19 265,434

12/31/2016 29,603 4,500 59,964 68,003 81,324 0 14,520 252 22 257,918

12/31/2015 31,371 5,000 58,789 60,424 71,355 0 14,900 383 24 242,245

1 Includes Linked Deposits
FCS Debt Yields Pushed Lower

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Thin Risk Premiums

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 Calls in ‘19 – $ 54 billion

 Calls in ‘18 – $ 29 million

 Calls in ‘17 – $ 5 billion

 Calls in ‘16 – $ 58 billion

 Calls in ‘15 – $ 34 billion

 Net Interest Spreads

 2.04 % for ’19, 2.12% for ’18, 2.25% for ’17, 2.31% for ‘16, 

2.40% for ‘15 . 

 Net Interest Margins

 2.42 % for ’19, 2.46% for ’18, 2.48% for ’17, 2.49% for ‘16, 

2.55% for ‘15 

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Heavy Call Activity
 Weighted average maturity of FCS Debt

 Dec./2019 – 2.82 years

 Dec./2018 – 2.86 years

 Dec./2017 – 2.88 years

 Dec./2016 – 2.72 years

 Dec./2015 – 2.81 years

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Debt Maturity 
 Percentage of FCS debt maturing within 1 year.

 Dec./2019 – 38.8 percent

 Dec./2018 – 38.8 percent

 Dec./2017 – 39.1 percent

 Dec./2016 – 40.3 percent

 Dec./2015 – 37.6 percent

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Debt Maturity 
 As of 12/31/19 System = 177 (166) days:

• AgFirst = 222(197) days, AgriBank = 166(135) 

days, FCB of TX = 211(196) days, CoBank = 

176(168) days 

 As of 12/31/18 System = 182(169) days:

• AgFirst = 217(192) days, AgriBank = 160(135) 

days, FCB of TX = 241(226) days, CoBank = 

177(169)days 

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Days of Liquidity 
 Secured Overnight Financing Rate use growing slowly.

 Under 2 years until LIBOR’s official R.I.P. date.

 Global U.S. LIBOR referenced instruments still dominate.

 System’s J & S LIBOR directly based debt totals $77 

billion.

 Funding Corp. issued just under $8 billion in SOFR 

indexed bonds in 2019.

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SOFR
Global Issue

Major Economic Shock 

Still Evolving

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Coronavirus
FCS Debt Yields Move Upward

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Risk Premiums Steady

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 Strong Demand for FCS Debt

 FCS Debt Yields Falling

 Risk Premiums Remain Favorable

 Interest Rate Spreads Continued to Narrow

 Bottom Line Benefitted Less

 Substantial Liquidity 

 SOFR’s Slow Acceptance

 Coronavirus Wildcard 28

Summary