Bond National Agricultural Credit Banks 5% ( US31331GBX60 ) in USD

Issuer	National Agricultural Credit Banks
Market price	104.147 % ▼
Country	United States
ISIN code	US31331GBX60 ( in USD )
Interest rate	5% per year ( payment 2 times a year)
Maturity	22/09/2038
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Minimal amount	1 000 USD
Total amount	15 000 000 USD
Cusip	31331GBX6
Standard & Poor's ( S&P ) rating	AA+ ( High grade - Investment-grade )
Moody's rating	Aa1 ( High grade - Investment-grade )
Next Coupon	22/03/2026 ( In 41 days )
Detailed description	The Federal Farm Credit Banks are a government-sponsored enterprise system providing credit and other financial services to farmers, ranchers, and agricultural cooperatives. Detailed Analysis: Federal Farm Credit Banks' 5% USD Bond, Rated AA+/Aa1, Offers Long-Term Investment Opportunity Investors are currently evaluating a notable fixed-income opportunity in the form of a bond issued by the Federal Farm Credit Banks, identified by ISIN US31331GBX60 and CUSIP 31331GBX6. This instrument originates from the United States, positioning it firmly within a globally recognized and liquid financial market. The Federal Farm Credit Banks (FFCBs) serve as a critical component of the Farm Credit System, a government-sponsored enterprise (GSE) in the United States. This nationwide network of borrower-owned lending institutions is specifically mandated to provide credit and related services to farmers, ranchers, aquatic producers, rural homeowners, and agricultural cooperatives. Their primary mission is to ensure the financial stability and accessibility of credit for American agriculture and rural communities, thereby playing a vital role in the nation's food production and rural economy. As a GSE, the FFCBs' debt securities benefit from an implicit, though not explicit, backing from the U.S. government, which significantly contributes to their exceptional creditworthiness and appeal to risk-averse investors. This specific bond, denominated in United States Dollars (USD), features an attractive annual coupon rate of 5%. It is structured to provide semi-annual interest payments to bondholders, ensuring a regular and predictable income stream. The bond has a definitive maturity date set for September 22, 2038, indicating a long-term investment horizon suitable for portfolios seeking extended duration exposure. The total nominal size of this particular issuance stands at $15,000,000, reflecting a substantial offering in the market. Furthermore, the minimum purchase increment is set at $1,000, making it accessible to a range of institutional and individual investors seeking exposure to high-quality fixed-income assets. Currently, the bond is trading on the open market at 98.8383% of its par value. This price indicates it is trading at a slight discount, potentially offering a yield to maturity higher than its stated coupon rate for new investors who acquire it at this price and hold it until its 2038 maturity. A key highlight of this offering is its exceptional credit quality, which is underscored by robust ratings from leading independent agencies. Standard & Poor's (S&P) has assigned a rating of AA+, while Moody's has rated the bond Aa1. These very high ratings reflect the exceedingly low credit risk associated with the Federal Farm Credit Banks, largely due to their status as a government-sponsored enterprise and their critical, systemic role in the U.S. agricultural sector, which provides a strong implicit government backing. In summary, the Federal Farm Credit Banks' 5% bond maturing in 2038 presents a compelling opportunity for investors seeking a long-duration, high-quality fixed-income asset. Its strong credit ratings, consistent semi-annual coupon payments, and the implicit backing derived from its issuer's GSE status position it as a stable and reliable component for diversified portfolios, particularly for those prioritizing capital preservation and consistent income generation within the U.S. bond market.