Federal Home Loan Bank of Topeka Just Filed Its Quarterly Report: ASSETS AND LIABILIT...

ASSETS AND LIABILITIES SUBJECT TO OFFSETTING

FHLBank presents certain financial instruments, including derivative s, repurchase agreements and securities purchased under agreements to resell, on a net basis by clearing agent by Clearinghouse, or by counterparty, when it has met the netting requirements. For these financial instruments, FHLBank has elected to offset its asset and liability positions, as well as cash collateral received or pledged, and associated accrued interest.

FHLBank has analyzed the enforceability of offsetting rights incorporated in its cleared derivative transactions and determined that the exercise of those offsetting rights by a non-defaulting party under these transactions should be upheld under applicable law upon an event of default including a bankruptcy, insolvency, or similar proceeding involving the Clearinghouse or clearing agent, or both. Based on this analysis, FHLBank presents a net derivative receivable or payable for all of its transactions through a particular clearing agent with a particular Clearinghouse.

Tables 9.1 and 9.2 present the fair value of financial assets, including the related collateral received from or pledged to clearing agents or counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of March 31, 2020 and December 31, 2019 (in thousands):

Table 9.1
03/31/2020
Description
Gross Amounts
of Recognized
Assets
Gross Amounts
Offset
in the
Statements of
Condition
Net Amounts
of Assets
Presented
in the
Statements of
Condition
Gross Amounts
Not Offset
in the
Statement of
Condition1
Net
Amount
Derivative assets:
 
 
 
 
 
Uncleared derivatives
$
22,162

$
(19,823
)
$
2,339

$
(934
)
$
1,405

Cleared derivatives
4,561

196,549

201,110


201,110

Total derivative assets
26,723

176,726

203,449

(934
)
202,515

Securities purchased under agreements to resell
2,700,000


2,700,000

(2,700,000
)

TOTAL
$
2,726,723

$
176,726

$
2,903,449

$
(2,700,934
)
$
202,515

                   
1 
Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.2
12/31/2019
Description
Gross Amounts
of Recognized
Assets
Gross Amounts
Offset
in the
Statements of
Condition
Net Amounts
of Assets
Presented
in the
Statements of
Condition
Gross Amounts
Not Offset
in the
Statement of
Condition1
Net
Amount
Derivative assets:
 
 
 
 
 
Uncleared derivatives
$
21,749

$
(14,424
)
$
7,325

$
(495
)
$
6,830

Cleared derivatives
3,061

144,418

147,479


147,479

Total derivative assets
24,810

129,994

154,804

(495
)
154,309

Securities purchased under agreements to resell
4,750,000


4,750,000

(4,750,000
)

TOTAL
$
4,774,810

$
129,994

$
4,904,804

$
(4,750,495
)
$
154,309

                   
1 
Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Tables 9.3 and 9.4 present the fair value of financial liabilities, including the related collateral received from or pledged to counterparties, based on the terms of the FHLBank’s master netting arrangements or similar agreements as of March 31, 2020 and December 31, 2019 (in thousands):

Table 9.3
03/31/2020
Description
Gross Amounts
of Recognized
Liabilities
Gross Amounts
Offset
in the
Statements of
Condition
Net Amounts
of Liabilities
Presented
in the
Statements of
Condition
Gross Amounts
Not Offset
in the
Statement of
Condition1
Net
Amount
Derivative liabilities:
 
 
 
 
 
Uncleared derivatives
$
370,366

$
(361,796
)
$
8,570

$
(7,798
)
$
772

Cleared derivatives
4,249

(4,249
)



Total derivative liabilities
374,615

(366,045
)
8,570

(7,798
)
772

TOTAL
$
374,615

$
(366,045
)
$
8,570

$
(7,798
)
$
772

                   
1 
Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).

Table 9.4
12/31/2019
Description
Gross Amounts
of Recognized
Liabilities
Gross Amounts
Offset
in the
Statements of
Condition
Net Amounts
of Liabilities
Presented
in the
Statements of
Condition
Gross Amounts
Not Offset
in the
Statement of
Condition1
Net
Amount
Derivative liabilities:
 
 
 
 
 
Uncleared derivatives
$
105,468

$
(105,266
)
$
202

$
(25
)
$
177

Cleared derivatives
1,240

(1,240
)



Total derivative liabilities
106,708

(106,506
)
202

(25
)
177

TOTAL
$
106,708

$
(106,506
)
$
202

$
(25
)
$
177

                   
1 
Represents noncash collateral received on financial instruments that: (1) do not qualify for netting on the Statements of Condition; or (2) are not subject to an enforceable netting agreement (e.g., mortgage delivery commitments).


The above information was disclosed in a filing to the SEC. To see the filing, click here.

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