| Key Features
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- Fixed term, floating rate, nonamortizing.
- Similar to our LIBOR Floating-Rate advance, but
with an embedded LIBOR-indexed interest-rate floor
feature.
- The premium cost of the embedded floor feature is included in the
advance rate on an annualized basis.
- The interest rate on the advance shall not be less
than zero.
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| Key Advantages |
- Depending on the embedded floor feature strike
rate, the advance may provide accelerated relief
from sharp declines in short-term interest rates
until the advance rate equals zero.
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| Common Uses
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- Manage balance-sheet interest-rate sensitivity
to declining short-term interest rates.
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| Maturities |
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| Index |
- One- or three-month LIBOR; must be the same for
the advance and the floor feature.
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| Minimum Advance
Size |
- $10 million per transaction or an aggregate of
$10 million for special offerings.
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| Disbursement |
- Two Boston business days.
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| Rate-Reset
Frequency |
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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 with prior notice at rate-reset dates
with no penalty for the advance component.
- Member will be charged for the remaining premium
cost of the embedded floor feature net of the actual
unwind value on the Bank's underlying floor.
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| Forward-Rate
Commitments |
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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 Slider Advance Primer for a discussion
of the risks and other considerations associated
with the Slider advance.
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| More Information |
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