Federal Home Loan Bank of Chicago Issues $490M in Consolidated Obligations

What Happened

• The Federal Home Loan Bank of Chicago filed an 8‑K on September 24, 2026 reporting the creation of direct financial obligations. Schedule A shows two consolidated obligations committed on trade dates September 21–22, 2026 totaling $490,000,000.
  • $50,000,000 fixed-rate bond (CUSIP 3130BCD911): trade date 9/21/2026, settlement 10/26/2026, maturity 11/26/2027, coupon 4.755%, Bermudan optional principal redemption (callable) with next call date 1/26/2027.
  • $440,000,000 variable-rate single-index floater (CUSIP 3130BCDL4): trade date 9/22/2026, settlement 9/24/2026, maturity 12/24/2029, non‑callable.

Key Details

• Total par amount committed: $490,000,000 ( $50M fixed, $440M floating).
• Fixed bond: 4.755% coupon, callable (Bermudan) beginning 1/26/2027.
• Floating bond: single-index variable rate, non-callable, matures 12/24/2029.
• Consolidated obligations are joint and several obligations of the 11 Federal Home Loan Banks, are not guaranteed by the U.S. government, and are sold through the Office of Finance under FHFA regulation.

Why It Matters

• This 8‑K documents new debt the Bank has committed to issue and identifies the Bank as the primary obligor for these consolidated obligations, which increases its funded liabilities and interest-rate exposure on record.
• The split between a short-term fixed, callable issue and a larger floating-rate, non-callable issue affects the Bank’s near-term cash interest profile and longer-term rate sensitivity.
• Investors should note consolidated obligations are supported only by the Federal Home Loan Banks (not the U.S. government) and that Schedule A may exclude short-term discount notes and any related derivative positions; total consolidated obligations outstanding will be reported in the Bank’s periodic SEC filings.