Select Page

Bulletins

September 27, 2019

FHLBank System Regulator Provides LIBOR Transition Guidance

 

UPDATE: On March 16, 2020, the FHFA extended to June 30, 2020 the FHLBanks’ ability to enter into LIBOR-based instruments that mature after December 31, 2021, except for investments and option embedded products.

 

The financial markets are preparing for the expected phase-out of the London Interbank Offered Rate (LIBOR) by the end of 2021.

As part of this transition, the Federal Housing Finance Agency (FHFA) recently issued a supervisory letter to all Federal Home Loan Banks (FHLBanks). The FHFA, our regulator, has required that by March 31, 2020, the FHLBanks cease entering into new LIBOR-referenced instruments with maturities beyond December 31, 2021. This change will impact certain FHLBNY products, including: the Adjustable Rate Credit Advance, Callable Advance, Fixed-Rate with Cap Advance and Putable Advance, as well as stand-alone derivatives we transact for members. As you know, in November 2018, we launched our Secured Overnight Financing Rate (SOFR)-Linked Adjustable Rate Credit Advance product, providing members with the ability to transact floating-rate advances using the SOFR index.

The full letter from the FHFA is available for your reference at: https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/Supervisory-Letter_Planning-for-LIBOR-Phase-Out.pdf.

The 11 Federal Home Loan Banks (FHLBanks) are participating in industry-wide efforts to ensure an orderly transition to an alternative reference rate. As a result, each FHLBank has developed a multi-year plan to reduce its LIBOR exposures over time.

The transition from LIBOR is a significant event, and one for which we must all be prepared. We are focused on ensuring that this transition is as smooth as possible, both for our cooperative and our members. And throughout this process, we – and all of the Federal Home Loan Banks – will continue to serve as a resource for our members as you undergo your own transition from LIBOR. For more information on the impact of the supervisory letter on your business with the FHLBNY; or to discuss the LIBOR transition and how the FHLBNY can assist you in these efforts, including educational outreach, webinars and training sessions, please contact your Relationship Manager at (212) 441-6700.

There is also additional information on LIBOR transition available at the following:

 

FHLBNY: LIBOR’s Transition to SOFR
https://fhlbny.com/financial-intelligence/libors-transition-to-sofr/

 

Alternative Reference Rates Committee
https://www.newyorkfed.org/arrc

 

Federal Reserve Bank of New York
https://apps.newyorkfed.org/markets/autorates/sofr

 

International Swap and Derivatives Association
https://www.isda.org

 

CME Group
https://www.cmegroup.com/trading/interest-rates/

 

Intercontinental Exchange
https://www.theice.com/iba/libor

 

FASB Financial Accounting Standards Board
https://www.fasb.org

Disclaimer:Notwithstanding any language to the contrary, nothing contained in this disclosure is intended to constitute an offer, inducement, promise, or contract of any kind. This product description and pricing may be subject to change without notice.

The content provided in this disclosure is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The Federal Home Loan Bank of New York (FHLBNY) makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.

Moreover, FHLBNY does not represent or warrant that the content of this disclosure is accurate, complete or current for any specific or particular purpose or application. It is not intended to provide nor should anyone consider that it provides legal, accounting, tax or other advice. Such advice should only be rendered in reference to the particular facts and circumstances appropriate to each situation. FHLBNY encourages you to contact appropriate professional(s) and consultant(s) to assess your specific needs and circumstances and to render such advice accordingly. In addition, FHLBNY is not endorsing or recommending the use of the means or methods contained in or through this disclosure for any special or particular purpose.

It is solely your responsibility to evaluate the risks or merits of any funding or investment strategy. In no event will FHLBNY or any of its officers, directors or employees be liable for any damages – whether direct, indirect, special, general, consequential, for alleged lost profits, or otherwise – that might result from any use of or reliance on these materials..

03/21/2024

2024 Update to the Member Products Guide

01/25/2024

2024 Update to the Member Products Guide & Correspondent Services Manual

01/02/2024

Introducing HDP® Plus from the FHLBNY

10/30/2023

Coming Soon: The 2023 Small Business Recovery Grant Program

10/26/2023

Municipal Bonds are Now Eligible Collateral

10/17/2023

2023 FHLBNY Board Elections Are Underway

10/05/2023

Update to the Member Products Guide & Correspondent Services Manual

09/11/2023

Introducing a New URL to Access Your FHLBNY Systems

08/23/2023

Price Incentives for Advances Executed Before Noon - Starting Tuesday, September 5, 2023

07/05/2023

FHLBNY Affordable Housing Advisory Council Open Nomination Period – For 2024 Service

06/30/2023

2023 Update to the Member Products Guide

06/05/2023

Coming Soon: Expansion of Our 0% Advance Offerings

02/22/2023

Notice of FHLB Members Selected For Community Review (Effective February 23, 2023)

01/20/2023

2023 Update to the Member Products Guide & Correspondent Services Manual

11/16/2022

Prepare for the 1Link Migration in December 2022

09/28/2022

2022 Update to MPG & CSM: Member Products Guide & Correspondent Services Manual

09/23/2022

Reintroducing Putable Advances, Fixed-Rate Advances with SOFR Cap and ARC Advances with Cap/Floor

07/05/2022

FHLBNY Affordable Housing Advisory Council Open Nomination Period

06/24/2022

Amendment to the FHLBNY Capital Plan Appendix Effective August 1, 2022

04/07/2022

Wire Transfers Migration to 1Link-IPR

01/24/2022

FHLBNY Announces Enhancements to the Rebate Program for Advances

01/03/2022

2022 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

12/03/2021

Updates to the 2022 Fee Schedules

08/24/2021

Important Announcement for Community Lending Programs Users

07/28/2021

An Enhancement to our Callable Adjustable Rate Credit Advance (Callable ARC)

07/20/2021

RSA SecurID® for 1Link-IPR Coming Soon

07/14/2021

Important Announcement Regarding the Upcoming FHLBNY Homepage Update

07/02/2021

FHLBNY CICA Disaster Relief Funding Update

04/14/2021

Enhancements to the Refundable Municipal Letter of Credit for Members Participating in the New Jersey Department of Banking and Insurance GUDPA Program

03/01/2021

Notice of FHLB Members Selected For Community Review (Effective March 1, 2021)

02/10/2021

FHLBNY Capital Stock Purchase Requirement for Letters of Credit (Effective March 1, 2021)

02/10/2021

2021 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

12/03/2020

2020 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

09/02/2020

Amendments to the FHLBNY Capital Plan (Effective October 2, 2020)

07/30/2020

FHLBNY CICA Disaster Relief Funding: Eligibility Expansion

05/15/2020

Update to the Member Products Guide

06/01/2020

Enhancements to the Refundable MULOC Product

04/23/2020

FHFA Provides Guidance on PPP Loans

01/03/2020

1Link® Migration: Phase I - Interim Portal Roll-out

12/31/2019

2019 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual (for Jan 2020)

12/17/2019

1Link® Migration: Phase I – Interim Access Portal

11/06/2019

Announcing the Callable Adjustable Rate Credit Advance Pilot Program

09/27/2019

FHLBank System Regulator Provides LIBOR Transition Guidance

06/04/2019

SOFR ARC: FHLBNY is pleased to announce the expansion of the SOFR-Linked ARC Advance Program

03/26/2019

Notice of Federal Home Loan Bank Members Selected For Community Review (March 26, 2019)

01/31/2019

Introducing the Homebuyer Dream Program: A New First-Time Homeowner Grant Program

01/24/2019

2019 Update to MPG & CSM: Member Products Guide and the Correspondent Services Manual

01/04/2019

Announcement of Fannie Mae and Freddie Mac Uniform Mortgage-Backed Security (UMBS)

No post

Latest News

03/21/2024

2024 Update to the Member Products Guide

03/05/2024

Report from the President: A Critical, Stabilizing Role

02/21/2024

FHLBNY Announces Fourth Quarter and Full-Year 2023 Operating Highlights

07/20/2021

RSA SecurID® for 1Link-IPR Coming Soon

04/23/2020

FHFA Provides Guidance on PPP Loans