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Credit Products – Libor-Indexed Advance

Fixed-term advance with an interest rate that adjusts periodically according to changes in LIBOR.

 Key Features
  • Adjustable rate
  • Fixed term
  • Nonamortizing
Common Uses
  • Fund adjustable-rate assets.
  • Manage liquidity needs.
  • Manage exposure to declining interest rates.
  • Long-term funding commitment at short-term interest rates.
  • Available out to 20 years.
    (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)
  • $2 million minimum but smaller requests may be accommodated in special offerings.
  • Funds are available two business days after the trade date.
  • 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 LIBOR-Indexed Advance Primer Adobe PDF icon for a discussion of the risks and other considerations associated with the LIBOR-Indexed advance.
Rate-Reset Frequency
  • Rate adjustment is typically every three months based on a spread to LIBOR, which is locked in for the full term of the advance.

  • Monthly and semiannual rate resets are also available.
Payment of Principal and Interest
  • Principal due at maturity.
  • Interest due on rate-adjustment date.
  • Interest is calculated on an actual/360-day basis.
  • Prepayable in full or in part on reset date without fee, or at any other time, subject to a fee. Partial prepayments may be in amounts as small as $100,000 and in intervals of $100,000 thereafter.
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.
More Information
Rates Specials
Forms and Applications