Federal Home Loan Bank of San Francisco Issues Consolidated Obligations

What Happened

• The Federal Home Loan Bank of San Francisco filed an 8‑K (Item 2.03) on September 22, 2026, disclosing commitments to issue consolidated obligation bonds and discount notes (the joint and several debt of the eleven Federal Home Loan Banks). Schedule A in the filing lists five consolidated obligation issues with trade dates of September 16–17, 2026, totaling $1,086,500,000 in par amount. The largest single issue is a $1.0 billion par non‑callable bond (CUSIP 3130BCBL6) maturing September 17, 2027 with a 4.40% coupon. The filing was signed by Richard McCarthy, Senior Vice President and Treasurer.

Key Details

• Total par amount listed on Schedule A: $1,086,500,000 (five issues).
• Largest issue: $1,000,000,000 par, 4.40% coupon, non‑callable, maturity 9/17/2027 (trade date 9/16/2026).
• Other listed issues include fixed‑rate bonds with coupons around 4.48%–5.00%, par amounts of $41.5M, $10M, $10M and $25M, and various maturities/call features (see Schedule A).
• Consolidated obligations are joint and several obligations of all 11 Federal Home Loan Banks, are not backed by the U.S. government, and are issued through the Office of Finance under FHFA regulation.

Why It Matters

• This filing documents new borrowing commitments that increase the Bank’s consolidated obligations for which it is the primary obligor, affecting the Bank’s funding profile and interest cost (coupons in the 4.40%–5.00% range).
• Consolidated obligations are a primary funding source for the Bank; investors should note these securities are not government‑guaranteed and are subject to FHFA rules that can require repayment allocation among the Federal Home Loan Banks.
• The filing also notes Schedule A excludes short‑term discount notes (<=1 year) and does not show any associated interest‑rate hedges; total outstanding obligations for which the Bank is primary obligor will be reported in periodic SEC filings.