CFC offers members the opportunity to invest short- and long-term cash surpluses in a range of flexible products with varying maturities. Members earn additional revenue through the return on these securities. At the same time, members’ investments demonstrate confidence in CFC and provide a valuable source of funds that helps keep costs down for all cooperatives.
As of May 31, 2009, members had provided more than $4.3 billion in equity and other investments in CFC.
CFC Collateral Trust Bonds
CFC is required to pledge collateral equal to at least 100% of the outstanding balance of debt issued under the collateral trust bond indentures. CFC pledges distribution mortgage loans and permitted investments under the collateral trust bond indentures. As a result, collateral trust bonds offer investors a direct pledge of electric distribution mortgages.
CFC Medium-Term Notes
Medium-term notes are a direct general corporate obligation of CFC.
CFC Commercial Paper
CFC Commercial Paper offers a direct general corporate obligation of CFC fully backed by 100% backup lines of credit provided by CFC’s bank group.
