Medium- And Long-Term Debt

6 Months Ended

Jun. 30, 2021

MEDIUM- AND LONG-TERM DEBT

Medium- and long-term debt is summarized as follows:


(in millions)	June 30, 2021		December 31, 2020
Parent company
Subordinated notes:
3.80% subordinated notes due 2026 (a)	$	271	$	280
Medium- and long-term notes:
3.70% notes due 2023 (a)	892		905
4.00% notes due 2029 (a)	607		633
Total medium- and long-term notes	1,499		1,538
Total parent company	1,770		1,818
Subsidiaries
Subordinated notes:
4.00% subordinated notes due 2025 (a)	371		380
7.875% subordinated notes due 2026 (a)	198		207
Total subordinated notes	569		587
Medium- and long-term notes:
2.50% notes due 2024 (a)	515		523
Total medium- and long-term notes	515		523
FHLB advances:
Floating-rate based on FHLB auction rate due 2026	—		2,800
Total FHLB advances	—		2,800
Total subsidiaries	1,084		3,910
Total medium- and long-term debt	$	2,854	$	5,728

(a)The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate.

Subordinated notes with remaining maturities greater than one year qualify as Tier 2 capital.

Comerica Bank (the Bank), a wholly-owned subsidiary of the Corporation, is a member of the FHLB, which provides short-and long-term funding to its members through advances collateralized by real estate-related assets. The interest rates on the FHLB advances resets between four and eight weeks, based on the FHLB auction rate. Each note may be prepaid in full, without penalty, at each scheduled reset date. The Bank held no outstanding long-term advances at June 30, 2021. Borrowing capacity is contingent on the amount of collateral available to be pledged to the FHLB. At June 30, 2021, $18.5 billion of real estate-related loans and $3.2 billion of investment securities were pledged to the FHLB as collateral with capacity for potential future borrowings of approximately $11.9 billion.

Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $8 million at June 30, 2021 and $10 million at December 31, 2020.