FHLB’s debt issuance plunges. Sign of easing bank US crisis | Forexlive

Bloomberg is reporting that according to sources, the FHLB debt issuances have plunged to $37 billion in the last week of March from over $300B two weeks earlier. The plunge from the all-time peak is an early sign that the banking crisis has started to subside.

The FHLBs are a backstop created to boost mortgage lending. The system is now known as the “lender of the next to last resort” (behind the Fed). They fund the lending through issuance of debt. The sharp fall is indicative of less of a need to be that lender to troubled institutions.