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.
Overnight Advances
Short-Term Advances
Medium- & Long-Term Advances
Letters of Credit
Other Credit Products, Programs & Features
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
*Please note: Availability is contingent upon market conditions.
Fixed-Rate Advance
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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
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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.
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Modifications: |
Learn more on Financial Intelligence.
Putable Advance
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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.