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Credit Products – SOFR-Indexed Advance

Nonamortizing, fixed-term advance with an interest rate that adjusts daily, according to changes in the Secured Overnight Financing Rate (SOFR).


Key Features
  • Adjustable rate
  • Fixed term
  • Nonamortizing
Common Uses
  • Manage liquidity needs.
  • Fund adjustable-rate assets.
  • Manage exposure to declining interest rates.
  • Long-term funding commitment at short-term rates.
Maturities
  • Terms out to 20 years.
Index
  • SOFR (Secured Overnight Financing Rate)
Minimum
  • $2 million minimum but smaller requests may be accommodated in special offerings.
Disbursement
  • Two business days after trade date.
Risks
  • Federal Home Loan Bank of Boston does not act as a financial adviser, and members should independently evaluate the suitability and risks of these advances.
Rate-Reset Frequency
  • Daily based on a spread to SOFR, which is locked in for the term of the advance.
Payment of Principal and Interest
  • Principal is due at maturity. Interest is due annually, two business days after the anniversary date of settlement.
Prepayment
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