FHLB: Discount Note Auction-Indexed Advance

DISCOUNT NOTE AUCTION-FLOATER ADVANCE

Fixed-term advance with an interest rate that adjusts according to changes in the Federal Home Loan Bank System's Office of Finance discount-note auctions.

Key Features	Adjustable rate Fixed term Nonamortizing

Key Advantages	Long-term funding at short-term rates Typically lower all-in rate than LIBOR

Common Uses	Manage balance-sheet interest-rate sensitivity Fund loan portfolios and LIBOR-indexed mortgage-backed securities.

Maturities	One to 10 years.

Index	Office of Finance four- and 13-week discount-note auctions.

Minimum	$10 million; smaller requests will be accommodated if possible.

Disbursement	Next-day

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 Discount Note Auction-Floater Advance Primer for a discussion of the risks and other considerations associated with the Discount Note Auction-Floater advance.

Rate-Reset Frequency	Every four or 13 weeks on an indicated reset date, based on the result of the prior day's discount-note auction, plus a predetermined spread. Spread to the index is locked-in for the full term of the advance.

Payment of Principal and Interest	Principal due at maturity Interest due on rate-adjustment date

Prepayment	Prepayable only on reset dates with no fee with prior notice.

Forward Rate Commitments	Not available

More Information	For more information, contact the Money Desk at moneydesk@fhlbboston.com or 1-800-357-3452. Advance fact sheet (and historical correlation - 2000-present - between Discount Notes and LIBOR)