Federal Home Loan Bank of Chicago Issues $115M in Consolidated Obligations

What Happened
The Federal Home Loan Bank of Chicago filed an 8‑K on September 29, 2026 (Item 2.03) reporting that it committed to issue consolidated obligation bonds with an aggregate par amount of $115,000,000 on trade dates September 23 and 25, 2026. The securities include fixed‑rate, callable bonds with coupon rates ranging roughly from 5.20% to 7.00% and maturities from October 1, 2029 through October 10, 2056. These consolidated obligations are joint and several obligations of the eleven Federal Home Loan Banks, are sold through the Office of Finance, and are not guaranteed by the U.S. government; FHFA rules allow FHFA to require another FHLB to repay obligations in certain circumstances.

Key Details

• Total par committed: $115,000,000 (trade dates Sept 23 & 25, 2026).
• Coupon range: ~5.20% to 7.00%; maturities: 10/1/2029 – 10/10/2056.
• Securities are callable (American and Bermudan call styles); next call dates fall in late 2026 / early-to-mid 2027 per Schedule A.
• Filing notes Schedule A excludes short-term discount notes (≤1 year), does not address related derivatives, and the Bank did not make a materiality determination for any specific consolidated obligation.

Why It Matters
This filing discloses new long‑term debt commitments by the Bank, which are a primary source of funding for its operations. Investors should note these are consolidated obligations (shared across the 11 Federal Home Loan Banks), are not U.S. government‑guaranteed, and the Bank will report total consolidated obligations for which it is primary obligor in future periodic filings. The schedule also excludes certain short‑term paper and does not detail any hedging or swap arrangements that may be associated with the bonds.