Even though the change for the FHLB’s better reliance on small-name financing began several years ago, recently it shift seems to have already been given a lot more service by the aftereffects of brand new SEC’s change from finest money markets funds. 2 trillion out of best currency fund so you’re able to authorities currency funds, which are simply for holding fundamentally simply Treasury and you may department ties–as well as people provided from the FHLBs–and you can Treasury- and you may agency-recognized repurchase agreements. Just like the revealed in the left committee off Figure cuatro, at the end of , nearly that-fifth of one’s currency loans industry’s three trillion buck profile try purchased FHLB loans. [Read more…]