Credit Products

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:

• More closely match the attributes of adjustable-rate assets with financing tied to floating rate advance funding
• Tailor to meet specific financing needs with a wide range of maturities, up to 30 years
• Link to the Secured Overnight Financing Rate (SOFR) index with the option to use Simple Averaging or Compounding interest accrual calculations
• Limit exposure to rising and falling interest rates by using embedded options (caps/floors)

Fixed-Rate Advance

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 SOFR Cap*

Combines a fixed-rate borrowing with an embedded interest-rate cap in which the rate remains fixed but may be reduced quarterly if SOFR 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

*Currently, Structured Advances (including Fixed-Rate Advance with SOFR Cap) will be limited to $5 billion with no per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.

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.

Learn more on Financial Intelligence.

Putable Advance*

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

Advantages:

• Competitive pricing
• Customized maturities from 2 to 10 years with lockout periods ≥ 1 year
• One-time or quarterly option exercise
• Customized strikes are available

View our Putable Rate Information.

*Currently, Structured Advances (including Putable Advances) will be limited to $5 billion with no per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.

Interest Rate Derivatives

Reduces income fluctuations caused by interest rate volatility

Advantages:

• Achieve asset/liability management goals
• Hedge interest rate exposure or increase the certainty of future funding costs
• Potentially lower the cost of funding

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 days¹. To receive the cash rebate, the prepaid advance(s) must have a remaining term of six months 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.

¹Advances booked under Community Lending Programs and advances with remaining maturities of less than six months are not eligible advances.

Transfer of Advances

Advances may be transferred between member institutions on a case-by-case basis. All transaction negotiations (pricing, finding qualified counterparties*, etc.) will be the sole responsibility of the respective member involved in the advance transfer. Upon notification by the respective member that the transaction is complete, the FHLBNY will transfer the advance(s) to the acquiring member and the appropriate collateral and activity-based capital stock adjustments will be made.

*To obtain transaction approval, the acquiring member will need to meet FHLBNY credit criteria and collateral requirements.