New Investment Opportunity Beckons ForCUs

WALL STREET - (06/14/06) – The Federal Home Loan Bank ofChicago’s $1 billion bond issue hit the Street Tuesday,representing the first time any of the 12 FHLBs has issued debt onits own. The 5.625% Subordinated Notes, due June 13, 2016, werepriced at 100% of the principal amount. Debt issued by the FHLBs isone of the few permissible investments for credit unions. Up tillnow, all FHLB debt was issued on a consolidated basis, with each ofthe regional banks responsible for a pro rata share. The FHLBs have$970 billion in consolidated obligation bondsoutstanding.