Both fixed-rate offerings feature Bermudan-style call options, giving the bank early redemption flexibility as it taps the capital markets for fresh funding.

April 07, 2026

The Federal Home Loan Bank of Cincinnati kicked off April 2026 by committing to two new Consolidated Bond issuances worth a combined $40 million, according to a disclosure filed with the Securities and Exchange Commission on April 7, 2026.

Bond Details

The first bond, traded on April 1 and set to settle on April 13, carries a par value of $25 million with a fixed coupon rate of 4.200 percent. It matures on April 13, 2029, giving it a three-year term. The bond includes a Bermudan-style optional redemption feature, meaning the FHLB can choose to redeem it on specified recurring dates beginning January 13, 2027.

The second bond, traded on April 2 with a settlement date of April 9, is a $15 million issuance maturing on March 25, 2031 — roughly a five-year term. It pays a fixed coupon of 4.500 percent and also features a Bermudan-style call option, with the first call date set for November 25, 2026.

Both bonds are fixed-rate, constant-coupon instruments, meaning they pay a steady interest rate throughout their life. The callable structure gives the FHLB flexibility to redeem the bonds early if market conditions shift favorably.

How Consolidated Obligations Work

Consolidated Obligations are the primary funding mechanism for the 11 Federal Home Loan Banks. These debt securities are issued through the Office of Finance, which coordinates sales to the public through authorized dealers. While the bonds are the joint and several obligation of all 11 FHLBanks, the FHLB Cincinnati serves as the primary obligor on these two issuances. Notably, Consolidated Obligations are not backed by the U.S. government — they rely solely on the combined financial resources of the Federal Home Loan Bank System.

Additional Context

The FHLB noted that the par amounts disclosed do not necessarily correspond to figures that will appear in its GAAP-based financial statements, since par values do not account for discounts, premiums, or concessions. The disclosure also does not reflect any interest-rate swaps or derivative instruments the bank may have entered into in connection with these bonds.

Short-term Consolidated Discount Notes, which have maximum maturities of 360 days, were not included in this disclosure as they are issued in the ordinary course of business.