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Credit Products

Give Your Institution the Strategic Flexibility to Maintain a Competitive Edge

The FHLBNY offers credit products designed to help facilitate your balance sheet strategies. Members can customize advances with a wide variety of maturities and structures, allowing you to choose funding that meets your objectives. FHLBNY advances can be customized by size, term, settlement date, amortization schedule, symmetry and more. If this is your first time borrowing with the FHLBNY, we created an interactive Borrower’s Guide to assist members who want to initiate their first borrowing.

Click on an advance for more information or view a printable version of all the descriptions.

As a true cooperative, all of our members are treated equally, regardless of asset size; your institution will receive the same terms, whether you are borrowing $1 million or $100 million.

Overnight Advance

A quick source of liquidity to help manage daily cash flows and provide funding for various short-term uses

Advantages:

 

Same-day access to funds for immediate cash needs

 

Ability to borrow up to maximum borrowing capacity

 

No additional borrowing limit restrictions above standard FHLBNY credit and collateral limits

 

No set-up or renewal fees

 

Can be initiated conveniently through 1Link®, our secure internet banking system

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 30 years

 

Can be linked to a wide variety of indices, including 1-, 3-, and 6-month LIBOR, the Secured Overnight Financing Rate (SOFR),Treasury bills, notes, bonds, and Fed Funds

 

Can limit exposure to rising and falling interest rates by using embedded options

Fixed-Rate Advance

Notice: The Putable Advance is temporarily suspended as a result of LIBOR cessation. The FHLBNY is no longer offering any structured products that are created using LIBOR-based hedges that mature beyond 2021. However, alternative indices are now being evaluated to create these products for our members. If you have interest in structured products, please contact your Relationship Manager at 212-441-6700..

Achieve a wide variety of financial management goals, with maturities ranging from overnight to 30 years*

Advantages:

Meet liquidity needs

Fund long-term assets

Lock in rates for future funding purposes

Forward start dates are available

Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million

The FHLBNY also offers the Callable Fixed-Rate Advance, where the borrower has the option of prepaying funding without any penalty. Please contact a Relationship Manager for more information.

 

*Dependent on financial condition and member type

Repo Advance

Obtain preferential pricing when using Treasury or Agency issued Mortgage-Backed, or CMO securities collateral

Advantages:

 

Effectively utilize your securities portfolio as collateral and obtain improved advance pricing

 

No penalties for pledging smaller blocks of securities

 

Receive the same low rates for AAA-rated Agency and Non-Agency securities

 

Maturities from 2 days to 10 years

 

Available with Symmetry for Fixed-rate, non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million

Amortizing Advance

Match the amortization characteristics of your fixed-rate mortgages and mortgage-backed security portfolios

Advantages:

 

Enhance match funding of long-term assets

 

Borrow fixed-rate funds with the option of customizing the amortization schedule to match a selected prepayment profile

 

Maturities and amortization schedule from 1 to 30 years

Callable Advance

An advance with built-in prepayment options that can help members reduce interest rate risk and prepayment risk at minimal added cost

Advantages:

No prepayment fees when “called” after the pre-determined lockout period

Offers protection amidst rising rates with flexibility to lower your cost of funds in static and declining rate environments

Tool to mitigate both interest rate and prepayment risks

For more information on how the Callable Advance can help meet your institution’s funding needs, please read this funding strategy article or download the overview.

Fixed-Rate Advance with a LIBOR Cap

Notice: The Fixed-Rate Advance with a LIBOR Cap is temporarily suspended as a result of regulatory guidance regarding LIBOR cessation. The FHLBNY is no longer offering any structured products that are created using LIBOR-based hedges that mature beyond 2021. However, alternative indices are now being evaluated to create these products for our members. If you have interest in structured products, please contact your Relationship Manager at 212-441-6700.

Combines a fixed-rate borrowing with an embedded interest-rate cap in which the rate remains fixed but may be reduced quarterly if 3-month LIBOR rises above the pre-selected cap

Advantages:

 

Provides protection against rising interest rates (lowers your institution’s cost of funds as rates rise)

 

Flexible medium-long-term funding option best used to extend liabilities, potentially enhance spreads, and preserve margins

 

Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $5 million

For more information on how the Fixed Rate with Cap can help meet your institution’s funding needs please visit our Fixed-Rate Advance with a LIBOR Cap Page.

Principal-Deferred Advance (PDA)

A hybrid advance product that combines elements of the Fixed-Rate and Amortizing Advance. It begins as a Fixed-Rate Advance, allowing members to choose a specific amount of time they would like to defer the principal payment of the advance up to 5 years. When the lockout or principal-deferred period ends, the advance becomes an Amortizing Advance, where the member makes principal and interest payments on the loan up to another 30 years.

Advantages:

Valuable asset/liability management tool

Fully amortizing (back-end) with a choice of varying balloon terms

Mirrors characteristics of a typical construction deal with a permanent take-out

No embedded options in the advance

 

For more information on how the PDA can help meet your institution’s funding needs please visit our PDA page. You can also read this funding strategy article or download the overview.

Putable Advance Modification Program

Offers the ability to potentially lower interest expense, reduce optionality in a member’s balance sheet and to better manage interest-rate and liquidity risks.

Modifications:
In an effort to provide our members with additional solutions for today’s challenging economic environment, the FHLBNY is pleased to offer members the ability to modify Putable Advances into new Fixed-Rate Advance structures. Members can modify Putable Advance structures which have been previously modified if at least 365 days have passed since the prior modification. Advances that have already been modified into regular fixed structures cannot be re-modified.

Learn more on Financial Intelligence.

Putable Advance

Notice: The Putable Advance is temporarily suspended as a result of LIBOR cessation. The FHLBNY is no longer offering any structured products that are created using LIBOR-based hedges that mature beyond 2021. However, alternative indices are now being evaluated to create these products for our members. If you have interest in structured products, please contact your Relationship Manager at 212-441-6700..

Advantages:A wide array of maturities and lockouts for medium- to long-term funding where the FHLBNY owns an option to terminate the advance at specified times

 

Competitive pricing

 

Customize maturities from 2 to 10 years and lockout periods from 1 year or greater

 

One-time or quarterly option exercise

 

Customized Strikes are available

View our Putable Rate Information.

Interest Rate Derivatives

Reduces income fluctuations caused by interest rate volatility

Advantages:

 

Lower the cost of funding

 

Hedge interest rate exposure or increase the certainty of future funding costs

 

Achieve asset/liability management goals

Note: Available for institutions with total assets less than $10 billion

Advance Rebate Program

Provides members with a cash rebate on a portion of the fees paid relating to the early extinguishment of eligible advances when new eligible advances are obtained within 30 calendar days. To receive the cash rebate, the prepaid advance(s) must have a remaining term of one year or longer, and new advance(s) must have a term of six months or longer.

Advantages:

Members receive cash rebate

Provides additional flexibility with balance sheet management

Strengthens and adds value to your Co-op

For more information on the Advance Rebate Program, please read this funding strategy article or download the overview.

Rate Information

Contact our Credit Services Representatives at (212) 441-6600 for a live quote or sign up to receive the daily rate indications (members only)

Structured Advance Pre-Transaction Disclosure