Members use FHLBank Pittsburgh's highly rated standby letters of credit (LCs) to collateralize public unit deposits, credit enhance transactions with third parties and facilitate a variety of other financing transactions.
Safe, efficient and easy to use, LCs offer members substantial benefits.
Confirming LCs function as a second-pay arrangement in which a member has issued its own LC and is seeking to improve the credit terms of the transaction by leveraging FHLBanks Aaa/AA+ rating (Moody's/S&P).
These can be valuable tools to support a member's community lending activities, including arranging financing to support bond issuances for community and economic development projects as well as affordable housing projects. Confirming LCs issued by FHLBank Pittsburgh can also be used to support other member obligations to third parties.