FHLB’s debt issuance plunges.
Bloomberg reporting that according to sources, the FHLB debt issuances have plunged to $37 billion in the last week of March from over $300B two weeks earlier. The plunge from the all-time peak is an early sign that the banking crisis has started to subside.
FHLBs backstop created to boost mortgage lending.
The system known as the “lender of the next to last resort” (behind the Fed). They fund the lending through issuance of debt. The sharp fall is indicative of less of a need to be that lender to troubled institutions.