There's no bigger issuer of debt than the Federal Home Loan
Banks' office of finance. Last year it raised $440 billion in bonds
and over $900 billion of term discount notes. Even the US
government doesn't issue as much, although the rising budget
deficit might mean the Treasury could soon be mounting a
challenge.
For now, though, the federal home loan banking system is bigger.
And not just in the amount issued. So far this year, according to
John Darr, CEO of the office of finance, 82 different underwriters
have taken part in its bond deals. That's nearly four times as many
as the US government uses. As a point of reference, Darr says that
roughly 110 institutions are registered as bond underwriters in the
US.
Yet it's much less well known than Freddie Mac and Fannie Mae.
Until May last year the FHLB had never issued what Darr describes
as "unswapped,...
