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Fixed Rate Advances

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