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

The FHLBNY is pleased to announce an enhancement to our Callable Adjustable Rate Credit Advance (Callable ARC). The Callable ARC features a one-time call option to extinguish funding early through two distinct option structures, giving members the flexibility to meet the demands of a fluctuating balance sheet. Given the shorter-term nature of the current borrowing environment, the minimum term for the Callable ARC has been lowered to 4 months (from the previous 7-month term) for our 1-month-left-to-maturity call option to better meet our members’ needs.

The Callable ARC gives members the latitude to either keep the advance funding to full contractual life or terminate it earlier on the predetermined call date. Members can use the call feature to strategically extinguish (and potentially rebook) the advance when the remaining term reaches either a 1-month-left-to-maturity or 1-year-left-to-maturity window, affording greater control in managing liquidity needs with no additional prepayment fees.

Some key benefits of the Callable ARC advance are:

Respond to changes in liquidity profile: If you no longer require floating-rate funding, the Callable ARC provides the flexibility to extinguish the advance at no cost on its call date. Should you require liquidity of a longer-term, you can extinguish at the call date and rebook an advance of a longer tenor.
Manage Balance Sheet and Capital Levels: Affords you with the ability to manage your balance sheet and capital levels more tightly.
Match Fund Floating Rate Assets: The Callable ARC can be linked to 1-Month LIBOR or SOFR indices, which can enable you to match the interest rate characteristics of floating-rate assets. Note, 1-month LIBOR ARCs will not be available with maturities that span beyond 12/31/21.
Capitalize on Market Volatility: Should the rate on the ARC advance improve or worsen with market volatility, members have the flexibility of either extinguishing the advance and rebooking at more advantageous levels or maintaining the advance to its original contractual maturity.

Callable ARC Advance: 1-Month Call at the End
Terms	7-month 4-month minimum term with a 1-month-left-to-maturity call option
Available Indices	1-month LIBOR and SOFR
Maturities	1-month LIBOR maturities not available beyond 12/31/2021; 3-year maximum term for Callable advances tied to SOFR
Option Structure	One time European (Euro) call option
Example	4 months Non-Call 3 months (4mNC3m) (Euro)

Callable ARC Advance: 1-Year Call at the End
Terms	3-year minimum term with a 1-year-left-to-maturity call option
Available Index	SOFR
Maturity	3-year is the maximum term (at this time)
Option Structure	One time European (Euro) call option
Example	3 year Non-Call 2 year 3yNC2y (Euro)

Please note: Due to limited amounts available at this time, funds will be distributed on a first-come, first-served basis.

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This report may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the Risk Factors set forth in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q filed with the SEC, as well as regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to revise or update publicly any forward-looking statements for any reason.