Federal Home Loan Bank of Chicago Issues Consolidated Obligation Bonds

What Happened
The Federal Home Loan Bank of Chicago filed a Form 8‑K on September 3, 2026, reporting the creation/commitment of several consolidated obligation bonds (its primary repayment obligation on those issues) with trade dates of August 31, 2026 and September 1, 2026. The reported issues are fixed‑rate, callable consolidated obligations (sold through the Office of Finance) with coupons in the ~4.75%–5.06% range and various call provisions (Bermudan and European). The report is signed by Michael Palumbo, Vice President.

Key Details

• Trade dates: August 31, 2026 and September 1, 2026 (reported on Form 8‑K filed Sept 3, 2026).
• Reported CUSIPs and par amounts (Schedule A):
  • 3130BBZE8 — $10,000,000 (coupon 4.75%)
  • 3130BBZR9 — $10,000,000 (coupon 4.80%)
  • 3130BBZW8 — $10,000,000 (coupon 4.75%)
  • 3130BC2E2 — tranches reported (e.g., $10,000,000 and $15,000,000; coupon 4.80%)
  • 3130BC2Q5 — $10,000,000 (coupon 5.06%)
• All reported consolidated obligations are callable (described as “Optional Principal Redemption”) with Bermudan or European call styles and are fixed‑rate (“constant”) bonds per Schedule A.
• Consolidated obligations are joint and several obligations of the 11 Federal Home Loan Banks, sold through the Office of Finance, backed only by the FHLBs (not by the U.S. government). The FHFA can require any Federal Home Loan Bank to repay obligations for which another Bank is the primary obligor. The Bank did not make a judgment about materiality for any particular obligation.

Why It Matters
This filing notifies investors that the Bank has committed to issuing specific consolidated obligation bonds and is the primary obligor on those issues. Consolidated obligations are a key funding source for the Bank: they increase its debt outstanding and affect its funding profile and interest expense. Because consolidated obligations are joint obligations of all Federal Home Loan Banks and are not government‑guaranteed, investors should note the legal structure and the FHFA’s authority described in the filing. Total consolidated obligations outstanding for which the Bank is primary obligor will be reported in the Bank’s periodic SEC filings.