Federal Home Loan Bank of Dallas Issues Consolidated Obligation Bonds

What Happened

• The Federal Home Loan Bank of Dallas filed a Form 8-K (Oct 1, 2026) reporting that, on trade date September 28, 2026, it committed to issue consolidated obligation bonds as the primary obligor. The scheduled issuances total $1,510,000,000 in par amount across three bonds with settlement dates in October 2026 and maturities ranging from December 28, 2026 to April 19, 2028.
• These consolidated obligations are sold through the Office of Finance on behalf of the 11 Federal Home Loan Banks, are backed only by the FHLBanks’ financial resources, and are not obligations of or guaranteed by the U.S. government. The report was signed by Katie Watson, Vice President and Director of Financial Reporting (Oct 1, 2026).

Key Details

• Trade date: 9/28/2026; total par amount committed: $1,510,000,000 (three bonds).
• Bond 1: $10,000,000 par; settlement 10/19/2026; maturity 4/19/2028; 5.000% fixed coupon; Bermudan callable (next call 1/19/2027).
• Bond 2: $1,000,000,000 par; settlement 10/5/2026; maturity 4/5/2027; non-callable; variable single-index floater at Overnight SOFR + 4.5 bps.
• Bond 3: $500,000,000 par; settlement 10/5/2026; maturity 12/28/2026; non-callable; variable single-index floater at Overnight SOFR + 3.0 bps.
• Filing notes: short-term consolidated obligation discount notes (≤1 year) are not included in Schedule A; Schedule A does not show related hedges/derivatives or whether proceeds will refinance existing obligations.

Why It Matters

• Funding and interest exposure: these issuances increase the Bank’s consolidated obligations for which it is the primary obligor and change its near-term funding profile and interest cost mix (including fixed-rate and SOFR-linked floating-rate debt).
• Credit/guarantee clarity: consolidated obligations are obligations of the FHLBanks collectively and are not U.S. government-guaranteed—important for investors assessing credit risk.
• Reporting limits: the 8-K provides commitment-level detail but not the Bank’s total consolidated obligations outstanding or any associated hedging; investors should consult the Bank’s periodic reports for the full funding and liability picture.