| Key Features
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- Adjustable rate
- Fixed term
- Nonamortizing
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| Common Uses
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- Manage interest-rate risk.
- Fund loans held in portfolio.
- Meet asset/liability objectives.
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| Maturities |
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| Indexes |
- One- or three-month Classic advance.
- One- or three-month LIBOR.
(LIBOR is the London Interbank Offered Rate, which
refers to the rates that most major international
banks dealing in Eurodollar currency charge each other
for large loans.)
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| Rate-Reset
Frequency |
- Quarterly or monthly, depending on the index. However,
the rate is capped at a predetermined strike level.
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| Strike Level |
- A wide range of strike levels is available, subject
to feasibility restrictions.
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| Minimum |
- $10 million
(Smaller minimums may be available in special offerings.)
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| Disbursement
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- For Classic-indexed Capped Floaters:
— Next-day if requested by 3 p.m.
— Same-day possible if requested by noon.
- For LIBOR-indexed Capped Floaters:
— Second-day if requested by 3 p.m.
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| Payment of
Principal and Interest |
- Principal due at maturity.
- Interest due on rate-adjustment date.
- Interest is calculated on an actual/360-day basis.
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| Prepayment |
- Prepayable in full or in part on any rate-reset
date with two business-days notice, subject to a fee.
- If the cap has any remaining value and the prepaid
amount is $5 million or more, you receive a credit
against the prepayment fee. Any unwind fees associated
with the cap will be included in the prepayment fees.
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| Forward Rate
Commitments |
- Lock in a guaranteed rate up to two years before
disbursement.
- Our forward rate commitment adds a premium to the
current rate.
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| Risks |
- The 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.
Please see the Capped
Floater
Advance Primer for a discussion
of the risks and other considerations associated
with the Capped Floater advance.
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| More Information |
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