October 17, 2016
The Federal Home Loan Bank of Boston recently announced three changes to the Products and Solutions Guide .
- The minimum for structured advance products has been reduced from $10 million to $2 million. Members may now transact structured advances as low as $2 million, enabling them to execute such transactions more quickly and efficiently. Lesser amounts may still require aggregation with other member requests.
- The Slider Advance now accommodates a negative advance rate. The Slider Advance is a fixed-term, adjustable-rate solution, similar to our LIBOR floating-rate products. What sets it apart is an embedded interest-rate floor. This feature offers accelerated relief should LIBOR fall below the strike rate of the floor, resulting in a 2:1 decline in the adjusted advance rate. In addition to providing insurance against falling rates, the Slider can now adjust to rates less than zero, offering members the opportunity to further benefit if short-term rates drop.
- Participation loans are now eligible as collateral for extensions of credit. Participation loans have become a growing part of our members' balance sheets. In response to member requests, the Bank now accepts commercial real estate and multi-family participation loans as eligible collateral for all extensions of credit.
If you have any questions regarding these changes, please contact your relationship manager or the Money Desk.