EDU Articles
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What is the Federal Home Loan Bank Act?
The Federal Home Loan Bank Act was signed into law by President Hoover in 1932.
The goal of the legislation was to make liquidity more accessible to banks for the purpose of making home loans, so that more Americans could acquire permanent residences. The bill established the FHL Bank system, which now consists of 11 FHL banks.
The Federal Home Loan Bank Act of 1932 established the FHL Bank system, which is a co-operative banking network for banks and other lending institutions who make home loans. The FHL banks are owned by their member institutions, who purchase stock in the bank and are then permitted to take loans out from it, using that money to provide loans to customers.
The Federal Housing Finance Agency, or FHFA, oversees the FHL banks as well as Fannie Mae and Freddie Mac. According to the FHL website, over 80 percent of the nation’s lending institutions make use of the FHL for their liquidity needs. Loans are priced at a small spread over comparable US Treasuries.
Funds for the FHL are generated through the sale of Consolidated Obligations to the general public, but, while the FHL System is registered with the SEC, the 11 individual FHL banks are not.
What is Euro LIBOR?
The primary benchmark for short-term interbank loans around the world is the LIBOR, and Euro Libor is denominated in Euros
What are index futures?
Index futures are futures contracts written on an index in which a large position can be held with a small margin
What is a naked call?
A naked call is a type of option contract where the seller of a call does not own the underlying security
What is an Irrevocable Trust?
An Irrevocable Trust is one in which the grantor (the person who creates and funds the trust) cannot modify the trust...
What is the DAX?
The DAX is an index that tracks the 30 largest cap stocks that trade on the Frankfurt Stock Exchange in Germany
What is Times Interest Earned (TIE)?
Times Interest Earned is analysis that compares the pre-tax earnings of a company to the total amount of interest payable
What is Dividend Adjusted Return?
In a lesser-known context, dividend adjustment means a payment of accrued but yet-unpaid dividend amounts to the...
What is Lifetime Cost?
Lifetime cost is the total amount of money that a good will cost a consumer over the entire course of ownership
What are ICOs?
ICO is an acronym for Initial Coin Offering, and it is the primary way that new companies can use blockchains to raise capital
What is the Broadening Wedge Descending (Bearish) Pattern?
The Broadening Wedge Descending pattern forms when a currency pair price makes lower lows and lower highs, forming two slopes