Bond National Agricultural Credit Banks 0% ( US3133EM6Z02 ) in USD

Issuer National Agricultural Credit Banks
Market price 100 %  ▲ 
Country  United States
ISIN code  US3133EM6Z02 ( in USD )
Interest rate 0%
Maturity 08/12/2023 - Bond has expired



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Minimal amount 1 000 USD
Total amount 135 999 000 USD
Cusip 3133EM6Z0
Standard & Poor's ( S&P ) rating AA+ ( High grade - Investment-grade )
Moody's rating Aaa ( Prime - Investment-grade )
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.

A recently matured fixed-income instrument, identified by its ISIN US3133EM6Z02 and CUSIP 3133EM6Z0, provides an illustrative case study of debt obligations issued by government-sponsored enterprises within the United States. This bond was issued by the Federal Farm Credit Banks, a cornerstone of the U.S. financial system specifically chartered by Congress to ensure a stable and reliable source of credit for American farmers, ranchers, and other agricultural producers, as well as rural homeowners and businesses through a nationwide network of borrower-owned institutions. As a vital component of the Farm Credit System, the Federal Farm Credit Banks fund their lending operations primarily through the issuance of debt securities, which are generally regarded for their high security due to the issuer's systemic importance and implicit government backing. This particular obligation, denominated in U.S. Dollars (USD) and originating from the United States, featured a nominal interest rate of 0%, indicating its structure as either a zero-coupon bond, where yield is generated from the discount at which it is purchased and then repaid at par, or a very short-term note priced at par. With a total issuance size of USD 135,999,000 and a minimum purchase increment of USD 1,000, it was accessible to a broad spectrum of investors. The bond's market price stood at 100% upon its maturity on December 8, 2023, at which point it was fully redeemed, confirming its successful repayment. While a payment frequency of 2 was noted, for a 0% interest bond, this characteristic typically refers to administrative or reporting intervals rather than traditional coupon distributions. Reflecting the exceptional creditworthiness of the Federal Farm Credit Banks and their critical role in the agricultural economy, this bond carried robust credit ratings: AA+ from Standard & Poor's (S&P) and the highest possible rating, Aaa, from Moody's. These ratings underscore the extremely low credit risk associated with the issuer, solidifying their debt instruments as premium offerings in the fixed-income landscape. The orderly maturity and full repayment of this bond at its face value on December 8, 2023, therefore, reaffirms the reliability and strong financial standing of the Federal Farm Credit Banks within the U.S. bond market.