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Credit Products – Flipper Advance With Guaranteed Flip

The Flipper with Guaranteed Flip is a floating-to-fixed rate advance. It provides the member a period (typically one to three years) of sub-LIBOR funding and the potential for market-rally participation. At the end of the floating-rate period, the advance will convert (flip) into a fixed-rate advance, at a predetermined rate, until maturity.


Key Features
  • Sub-LIBOR indexed adjustable rate funding during the floating-rate period.

  • Nonamortizing

  • The interest rate can reset at a rate less than zero.
Common Uses
  • Manage interest-rate-risk sensitivity.

  • Generally used when net interest margins are under pressure. Sub-LIBOR funding for the floating-rate period is available.
Maturities
  • Out to 20 years.
Floating-Rate Period
  • The Flipper with Guaranteed Flip advance is offered with a floating-rate period of your choice from three months to 10 years.
Availability
  • Available any business day until 1 p.m.
Disbursement
  • Funds are available two business days after the trade date.
Offering Size
  • Orders for Flipper with Guaranteed Flip advances of less than $2 million will be aggregated with other requests for advances with identical terms and will be executed when orders total $2 million.

  • FHLB Boston will make its final pricing determination when the transaction can be executed.
Rates
  • Sub-LIBOR indexed adjustable-rate funding during the floating-rate period converting to a predetermined fixed rate at the end of the floating-rate period.
Member-Initiated Prepayment
  • Prepayable at any time, subject to a fee, which may be substantially greater than those associated with Classic advances of the same maturity.
Risks
  • FHLB Boston does not act as a financial adviser, and members should independently evaluate the suitability and risks of these advances. Please see the Flipper Advance with Guaranteed Flip Primer Adobe PDF icon for a discussion of the risks and other considerations associated with this product.
Payment of Principal and Interest
  • Principal due at maturity and interest due monthly on the second business day of the month.

  • Interest is calculated on an actual/360-day basis
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