About the TAP Issue Program

The TAP Issue Program was launched on July 6, 1999, as a refinement to the FHLBank bullet bond auction process. Rather than frequently bringing numerous small bullet issues of similar maturities to market, the TAP Issue Program aggregates the most common maturities by reopening them over a three-month period. As a result, most "on-the-run" issues grow throughout the cycle. TAP Issues generally remain open for three months, after which they are closed and a new series of TAP Issues is opened to replace them. If market conditions permit, previous TAP Issues that have rolled down the curve may be reopened as the new cycle's "on-the-run" issue.  This Program has reduced the number of separate bullet bonds issued, but more importantly, has enhanced market awareness through increased issue size, secondary market activity, and utility, while providing enhanced funding diversification for the FHLBanks. This predictable and structured auction process has also improved liquidity and stimulated demand from investors and dealers seeking high-quality Agency paper.

The TAP Issue Program creates specific maturities that are intended to be re-opened over 3-month periods through competitive auction. Re-openings are expected to continue for the balance of the quarter, OID permitting. Issuance periods will begin on the first day of each February, May, August and November, and will last for three calendar months. Maturity dates will be the second Friday of the month following the commencement of the TAP cycle, with semi-annual interest payment dates on the same date of the applicable month as the maturity date. The FHLBanks may issue other TAP maturities from 12 months to 30 years (in addition to on-the-run issues), and may also reopen TAPs from prior cycles as they roll down the curve, further increasing both size and liquidity.

For additional information please contact the Office of Finance at 703-467-3600 or info@fhlb-of.com.