New Asset Types Acceptable for Discount Window(ZT)

Federal Reserve Bank
of Dallas
HELEN E. HOLCOMB FIRST VICE PRESIDENT AND CHIEF OPERATING OFFICER DALLAS, TEXAS 75265-5906
Notice 99-87 October 13, 1999

TO: The Chief Operating Officer of each financial institution and others concerned in the Eleventh Federal Reserve District

SUBJECT New Asset Types Acceptable for Discount Window and Payments System Risk

DETAILSIn response to the increased volume of collateral being pledged to theFederal Reserve for century date change contingency purposes, theReserve System has approved acceptability and valuation criteria for anumber of asset types. Effective immediately, the following asset typesare now acceptable for Discount Window and Payments System Riskpurposes: Collateralized Bond Obligations, Collateralized LoansObligations, Certificates of Deposits, Commercial Mortgage BackedSecurities, Deposit Notes.

Looking ahead, the Federal Reserve anticipates approving additional asset types as collateral. ...

[...]

ATTACHMENT

Attached is an updated collateral margin table reflecting the addition of these asset types and the current margins. ...

[Which includes 'Lendable Value for Assets with [and without] Market Prices', such as]


Asset-Backed Securities (AAA)
(Including CLOs & CBOs)

Asset-Backed Securities (non AAA)
(Not Including CLOs & CBOs)

Mortgage Pass-Through Securities
(GNMA,FNMA,FHLMC)

Commercial Mortgage Backed Securities
(AAA)

Collateralized Mortgage Obligations
(AAA) (GNMA,FNMA,FHLMC,Private)

Commercial & Agricultural Loans
& Agency Guaranteed Loans

International Agencies
Student Loans
Municipal Bonds

etc etc (emphasis added)