Educational Resources by "Letters of Credit"

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Expanding Markets, Expanding Letter of Credit Uses Whitepaper Expanding Markets, Expanding Letter of Credit Uses Whether it's an opportunity to drive fee income and enhance ROE by backing a bond, supporting a self-insurance program, or covering a customer's performance obligation; it may be worth your while to explore some of these expanded uses of letters of credit. Decreasing Securities Eligibility Case Study Decreasing Securities Eligibility A financial institution has historically supported a portfolio with a high percentage of agency mortgage-backed and callable agency securities. Interest rates have dropped and many of these securities have paid down quickly or have been called. The Forgotten Security Call Case Study The Forgotten Security Call Historically, a financial institution has collateralized a public unit deposit with a pledge of callable agency securities. A member subsequently receives notification that the callable bond will be called in five days, the next scheduled call date. A Strategic Review of Liquidity Coverage and Income Case Study A Strategic Review of Liquidity Coverage and Income In the wake of declining margins and a regulatory discussion, a financial institution's management team would like to review means of improving liquidity and income. An increasing portion of public unit deposits is being pledged via securities. Diminishing Securities Availability for Collateralization Case Study Diminishing Securities Availability for Collateralization With a recovering economy, a member is sustaining strong loan growth and has been decreasing its securities portfolio in order to fund a portion of that growth. An increasing percentage of the securities position has already been pledged to multiple public unit depositors. Public Unit Deposit Collateralization: Multiple Benefits to The FHLB Des Moines Member and to the Public Unit Depositor Whitepaper Public Unit Deposit Collateralization: Multiple Benefits to The FHLB Des Moines Member and to the Public Unit Depositor An FHLB Des Moines member institution requests a letter of credit via an application. Next, a letter of credit is generated in favor of a public unit. Once the letter of credit is in place, the member financial institution is set to generate funding from the public unit. Learn more in this article. The Impact of the Collateralization Method for Public Unit Deposit Letters of Credit on Liquidity Ratios and Income Whitepaper The Impact of the Collateralization Method for Public Unit Deposit Letters of Credit on Liquidity Ratios and Income It is valuable for public unit depositories to consider the benefits of diversifying their methods of collateralization. Customized sensitivity analysis involving direction of collateralization away from securities and pledging in favor of letters of credit can yield positive results. Standby Letters of Credit Webinar Webinar Standby Letters of Credit Webinar Did you know Standby Letters of Credit from Federal Home Loan Bank of Des Moines may provide an alternative source of collateral for securing Public Unit Deposits, thus improving your liquidity, income and efficiency? Lessons in Letters of Credit Case Study Lessons in Letters of Credit The flexibility available with the FHLB Des Moines Letter of Credit has improved the bank's ability to support public entities. Three ways to put Letters of Credit to work for you Whitepaper Three ways to put Letters of Credit to work for you Build your relationships with public unit depositors and support new business opportunities with an FHLB Des Moines Letter of Credit. How to Use Letters of Credit to your Advantage Article How to Use Letters of Credit to your Advantage The Bank's credit standing and capital market access substitutes for that of the member which helps to ensure a wide acceptance of the our LOCs. Credit Enhance Bond: A Lesson in Letters of Credit Case Study Credit Enhance Bond: A Lesson in Letters of Credit Pair a Confirming Letter of Credit with a Community Investment Advance to not only support the bond financing but provide the loan financing on eligible projects.