Federal Home Loan Banks are currently offering 3.5% yields on their paper but making no money due to their low-coupon assets and operational costs, and without regulatory intervention to allow them to borrow more from the Fed's home loan advance facility, some will go out of business.
causalpending
Speaker
Chris WhelanEvidence Quote
“they're paying three and a half but they're not making any money”
Source
The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
My Notes
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