|
 |
Discount Notes - Program Summary |
(See the Bonds and Discount Notes Offering Circular for a full description.)
Farm Credit Discount
Notes are high credit quality, short-term debt
instruments. Discount Notes are issued at a discount
to their par amount, similar to U.S. Treasury
bills. Discount Notes are generally issued each
Business Day with maturities of one to 365 days.
Discount Notes are generally available each morning through
the Discount Note
Dealers.
|
|
| |
Highlights
High credit quality - Prime-1 rated by Moody’s*, A-1+ by Standard & Poor’s* and F1+ by Fitch*
A viable alternative to comparable U.S. Treasuries
with the potential for yield enhancement
Interest income is generally exempt from state
and local income taxes
Portfolio diversification opportunity
The following is a summary of :
Program Features
Security Description
Issuance Process
Issuance Activity
Distribution to Investors
Program Features
Flexible – The range of maturity dates
provides investors with the ability to match
maturities to their anticipated cash flow needs.
Generally issued each Business Day.
Daily issuance typically exceeds $1 billion.
Discounted structure avoids income reinvestment
risk normally associated with coupon bearing
instruments.
| Security
Description |
| Maturities:
|
1 to 365
days.
|
| Settlement: |
Typically settled on
the Trade Date.
|
| Form: |
Issued, maintained and
transferred on the book-entry system of
the Federal Reserve Banks.
|
| Minimum Denominations:
|
$5,000 ($1,000 increments
thereafter)
|
| Interest: |
Discount Notes are offered
at a discount from the par amount to be
paid at maturity. No periodic payments
of interest will be made. The amount of
the discount is computed as follows:
Par amount X (Actual number of Days/360) X
(Discount Rate/100)
|
| Offering Documentation: |
See the Bonds and Discount
Notes Offering Circular
Specific terms are described in the
daily Offering Announcement available
on Bloomberg FFCB <go> and Reuters FFCB04.
|
| Additional Information
for Investors: |
Farm Credit System Annual
Information Statements
Farm Credit System Quarterly
Information Statements
Financial Press Releases
|
Issuance Process
Generally offered each Business
Day in varying amounts and maturities, through
the Discount Note Dealers.
Daily offerings are listed on Bloomberg FFCB <go> and Reuters FFCB04 by close of business the previous Business
Day.
The discount rates for each day’s offerings
are generally posted by 9:00 a.m. NYC time.
Customer orders submitted to the Funding Corporation
by Discount Note Dealers prior to pricing receive
priority and are allocated immediately after
pricing. Customer orders submitted after pricing
are allocated on a first-come, first-served basis.
Any unsold Discount Notes are allocated to
the Discount Note Dealers when the program is
closed at approximately 11:00 a.m., NYC time.
Investor (reverse) inquires for Discount Notes
will be considered from the Discount Note Dealers
for specific amounts and maturities.
Issuance Activity
The Funding Corporation, on behalf of the Farm
Credit System Banks, typically issues more than
$1 billion in Discount Notes each Business Day.
See the following links for more information.
Discount Note Issuance - Total
amount issued through the most recent full month
and previous year reflecting the range of maturities.
Discount Notes Outstanding
- The specific amount of each Discount Note
outstanding, as of the prior Business Day’s
closing.
Distribution to Investors
A broad range of investors use Discount
Notes to manage their short-term investing needs.
These investors include banks and credit unions, state
and local governments, investment managers,
pension funds, insurance companies, central banks, corporations and individuals.
|
|
1Based on reported sales by selling group dealers.
* The Funding Corporation understands a number of factors contributed to this rating, including: the Farm Credit System's status as a Government-sponsored enterprise, which results from its public mission and ties to the Federal government; the traditionally strong governmental support of the agricultural sector; and the System's strong financial performance in recent years, including favorable earnings and strong capital ratios.
Before investing, please read the applicable Farm Credit System offering documentation. Unless otherwise defined, terms will have the meaning set forth in the applicable offering documentation. This document is neither an offer to sell nor a solicitation for an offer to buy any Farm Credit Debt Securities. Farm Credit Debt Securities are offered only by the offering documents available through select dealers. For further information regarding the tax treatment of investments in the Farm Credit Debt Securities, contact your tax advisor.
Farm Credit Debt Securities are the joint and several obligations of the Farm Credit System Banks and are not obligations of and are not guaranteed by the United States or any Federal agency instrumentality, other than the Banks.
|
|
|
