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Bulletins

September 23, 2022

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

The Federal Home Loan Bank of New York (FHLBNY) is pleased to reintroduce Structured Advances to give members more flexibility and options to better manage their balance sheets. These Structured Advances were temporarily suspended as a result of LIBOR cessation. However, as a result of significant evolution of the Secured Overnight Financing Rate (SOFR), we are now reoffering our members Structured Advances using SOFR-based hedges on a limited basis. Initially, Structured Advances will be limited to $3 billion in aggregate volume, with a $2.75 billion* per member limit, available on a first-come, first-served basis.

  • Putable Advances are Fixed-Rate Advances where the FHLBNY retains the option to extinguish the Advance at specified times (either one-time or quarterly option). Since the member gives the FHLBNY the option to “put” back the Advance, Putable Advances are priced very attractively and may be a solution for members to lower their cost of funds.

    Putable Advance Attributes

    Minimum Term 2 years
    Maximum Term 10 years
    Lockout ≥1 year
    Option European: 1 time
    Bermudan: Quarterly
    Accrual Method (Day count) Actual/360
    Payment Frequency Quarterly
    Business Day Convention Following
    Minimum Advance Amount $1 million
  • Fixed-Rate Advances with SOFR Cap can assist members in a rising rate environment where a cap with a specified threshold is chosen when booking the Advance. If SOFR rises to the point where it surpasses a specified threshold, the Advance would reprice downward, on a quarterly basis. The Fixed-Rate Advance with SOFR Cap is ideal to reduce interest expense when short-term rates rise sharply.

    Fixed-Rate Advance with SOFR Cap Attributes

    Minimum Term 1 year
    Maximum Term 10 years
    Accrual Method (Day count) Actual/360
    Payment Frequency Quarterly
    Business Day Convention Following
    Interest Calculation Compounding Only
    Minimum Advance Amount $5 million
  • Adjustable Rate Credit (ARC) Advances with Cap/Floor can help limit exposure to rising and falling interest rates by using embedded options (caps/floors). Caps give members flexibility to limit the maximum coupon of an ARC if rates rises, while 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.

    ARC Advance with Cap/Floor Attributes

    Minimum Term 3 months
    Maximum Term 30 years
    Accrual Method (Day count) Actual/360
    Payment Frequency Quarterly
    Business Day Convention Modified Following or Following
    Interest Calculation Compounding or Simple Average
    Minimum Advance Amount $5 million

If you are interested in our Structured Advances or would like more information, please contact your Relationship Manager at (212) 441-6700 or the Member Services Desk at (212) 441-6600.

*At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.

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FHLBNY Affordable Housing Advisory Council Open Nomination Period – For 2025 Service

04/30/2024

Update to Forward Starting Advances

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)

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