The SOFR-Linked Adjustable Rate Credit Advance Program
The Federal Home Loan Bank of New York (FHLBNY) is pleased to announce the expansion of the Secured Overnight Financing Rate (SOFR)-Linked Adjustable Rate Credit (ARC) Advance Program.
Now members can transact floating-rate advances using the new SOFR index without overall Program or per-member limits. In addition, the Program now has maturities available from 3 months and beyond with interest calculated on a simple averaging or compounding basis.
SOFR-Linked ARC Advance Attributes
|Terms*||3 months and beyond|
|Accrual Method (Day count)||Actual/360|
|Business Day Convention||Next Business Day/Modified Following|
|Interest Calculation†||Simple Averaging / Compounding (New)|
*Note: Availability beyond 10 years subject to market liquidity conditions and approval.
†Note: The SOFR-Linked ARC Advance with compounding interest will have a $5 million minimum trade size – smaller trade exceptions can be made by consulting with the Member Services Desk.
UPDATE: As of September 23, 2022, members are now able to embed interest-rate caps/floors into SOFR-Linked Adjustable Rate Credit Advances.
If you would like more information, contact a Relationship Manager at (212) 441-6700
or a Member Services Representative at 1-800-546-5101, option 1.