[Update 1: adds pricing details.]
Renewed interest from foreign central banks brought in the highest share of non-domestic investors for a new 3-year Federal Home Loan Bank
Global since August 2008, according to a FHLB System spokesperson.
The FHLB System earlier this week announced a new $3bn 3-year Global, which priced on Wednesday and settled Thursday. The Global has a maturity date of Jan. 16, 2013 with interest payments on January 16th and July 16th, beginning July 16, 2010. The Global was priced at 1.215% Treasury yield, a spread of +31.5 and a 1.5% coupon.
Bank of America (BAC)
, Citigroup (C)
and Goldman Sachs (GS)
served as lead managers on the issue, and RBC
served as senior co-manager.
The issue is oversold, with preliminary distribution focused 55% in the US, 20% in Asia, 6% in Europe and 19% in "other" geographic categories -- which could include South America, Canada, Africa, Australia and others.
Investment advisors or fund managers accounted for 47% of investors, while central banks made up another 32%. Financial institutions accounted for 8% of investors, while insurance and pension funds took another 7%, state and local governments took 1% and the remaining 5% of investors were considered "other/unknown."
Write to Diana Golobay
HousingWire looks into the FHLB System's role in mortgage finance in an upcoming magazine issue.