Medium-Long-Term Advances
Adjustable-Rate Credit ("ARC") Advance
Match the interest rate characteristics of your adjustable-rate loan portfolio
Advantages:
- Reduce basis risk by funding adjustable rate assets with financing tied to the same repricing index
- Can be tailored to meet specific financing needs with a wide range of maturities, up to 10 years
- Can be linked to a wide variety of indices, including 1-, 3-, and 6-month LIBOR, Treasury bills, notes, and bonds, and Fed Funds
- Limit exposure to rising rates by using an embedded rate cap
Fixed-Rate Advance
Achieve a wide variety of financial management goals, with maturities ranging from 2 days to 30 years
Advantages:
- Meet liquidity needs
- Fund long-term assets
- Lock in rates for future funding purposes
- Forward start dates are available
Strip Advance
Manage interest rate risk by setting your own quarterly principal payoff schedule to closely match cash flows between your funding and mortgage assets
Advantages:
- Achieve funding flexibility by creating your own payoff schedule
- Better match-fund the duration and amortization characteristics of mortgages, an MBS pool or other assets
- Maturities from 1 to 30 years