Fixed Rate Advances
Fixed Rate Advance
A Fixed Rate Advance lets you lock in funding costs for any term between two business days to 30 years. Regardless of the rate environment, the features on fixed rate advances make them an efficient and cost effective option for both short-term cash flow and long-term funding.
Opportunities
Access to long-term funds
Cover short-term funding gaps and seasonal cash flow needs
Lock in rates today for future funding needs with a forward starting advance
Protect against rising rates and preserve net interest margin (NIM)
Match-fund specific assets or pool of assets
Fund origination or purchase of fixed rate mortgages or securities
Asset/Liability and interest rate risk management
Fixed Rate Advance with Prepayment Symmetry
With terms of any period between 1 and 15 years, a Fixed Rate Advance that is enhanced with our Prepayment Symmetry feature gives you the ability to unlock value if you choose to repay early.
Opportunities
Access to long-term funds
Lock-in rates for future funding needs
Monetize gains from rising interest rates to offset losses
Reduce expenses when restructuring balance sheet
Match-fund specific asset or pool of assets
Fund origination or purchase of fixed rate mortgage or securities
Asset/Liability and interest rate risk management
Callable Advance with Prepayment Symmetry
A Callable Advance with Prepayment Symmetry gives you the flexibility to prepay a Fixed Rate Advance early without a prepayment fee on pre-specified date(s).
Opportunities
Fund fixed rate or adjustable rate mortgage assets
Builds in long-term flexibility to reduce interest rate risk — prepay early without a fee
Opportunity to refinance in a lower rate environment
Hedge against asset prepayment risk
Helps protect margins for asset-sensitive institutions in a falling rate environment
Putable Advance with Prepayment Symmetry
A Putable Advance with Prepayment Symmetry offers you a below-market fixed rate advance in exchange for providing the Bank an option, on select date(s), to “put” or terminate the advance prior to its scheduled maturity.
Opportunities
Lowers funding costs to help net interest margin (NIM) compression
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