Very interesting, this has been insightful. Thank you!

Thanks! Isn’t there a concern that the collateral being held is low-quality though i.e a similar situation to the ‘07-08 crisis? Another question - how can an institution qualify to become a FHLB member? Can anyone apply or are there some sort of capital requirement?

Hi Cornelius, quick question about the eligibility criteria. Does FHLB assess the underlying mortgages that members are funding? I believe a similar program in Canada exists (NHA MBS/CMB program) however there are very stringent requirements on what can and cannot be funded.