The SOFR-Linked Adjustable Rate Credit Advance Program
Federal Home Loan Bank of New York (FHLBNY) members can embed interest-rate caps/floors into SOFR-Linked Adjustable Rate Credit Advances. Embedding SOFR Caps and Floors can help members to manage their interest expense in a variety of diverse rate environments. Other advantages include:
- Caps give members flexibility to limit the maximum coupon of an ARC if rates rise
- Adding a floor helps members obtain an advantageous level on an ARC by limiting how low the coupon could fall in a declining rate environment
- Members may also create a corridor where they could add a cap and a floor to limit the variability of an ARCs coupon to a specified band
SOFR-Linked ARC Advance Attributes | |
|---|---|
| Terms* | 75 days and beyond |
| Payment Frequency | Quarterly |
| Reset Frequency | Daily |
| Accrual Method (Day count) | Actual/360 |
| Business Day Convention | Next Business Day/Modified Following |
| Interest Calculation | Simple Daily Average or Compounded |
*Note: Availability beyond 10 years subject to market liquidity conditions and approval.
If you would like more information, contact your Relationship Manager or Tom Settino, Director of Member Relations, at (212) 441-6838, or the Member Services Desk at (212) 441-6600.
Key Contacts
Relationship Managers
(212) 441-6700
FHLBNY@fhlbny.com
Member Services Desk
(800) 546-5101, option 1
MSD@fhlbny.com