The Flipper is a floating-to-fixed advance for which
FHLB Boston holds the option to cancel on certain specified
date(s). It provides the member a period (typically one to
three years) of sub-LIBOR funding and the potential for rally
participation. If the advance is not cancelled at the end
of the lockout period, the advance will convert (flip) into
a fixed-rate advance. FHLB Boston may cancel the advance
on any subsequent scheduled cancellation date, if any.
| Key Features
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- Sub-LIBOR indexed adjustable rate funding during
the lockout period.
- Nonamortizing
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| Common Uses |
- Macrofund balance sheet.
- Provide sub-LIBOR funding for a specified period.
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| Maturities |
- Typically two to 15 years, but — depending
on the structure of the specific advance — FHLB
Boston may have the option to cancel the advance
prior to final maturity.
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| Lockout Periods |
- The Flipper is offered with a lockout period
during which FHLB Boston cannot
cancel the advance.
- You may choose a lockout period of three months to
10 years.
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| Cancellation |
- FHLB Boston may cancel the advance at the end of the lockout
period.
- After the lockout period, FHLB Boston may
cancel the advance only on a scheduled cancellation
date, if any.
- FHLB Boston makes no warranties as to the
circumstances under which it might cancel an advance.
- FHLB Boston will provide notice of cancellation
in writing at least four business days before the
cancellation date.
- Some Flipper advances are offered with only one
cancellation date. Others are offered with a series
of cancellation dates at regular quarterly or annual
intervals.
- If FHLB Boston exercises its option to cancel,
you must repay the advance, but you may replace the advance
with a new advance. The new advance may be for any structure
and term to maturity agreed upon between you and the
Bank, subject to the Bank's Products
Policy. The rate on the new advance will be that
in effect at the time the new advance is taken.
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| Availability |
- Available any business day until 1 p.m.
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| Disbursement |
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| Offering Size |
- Orders for Flipper advances of less than $10 million
will be aggregated with other requests for advances
with identical terms and will be executed when
orders total $10 million.
- FHLB Boston will make
its final pricing determination when the transaction
can be executed.
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| Rates |
- Sub-LIBOR indexed adjustable rate funding during
the lockout period.
- Predetermined fixed rate if advance is not cancelled
at the end of the lockout period.
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| Member-Initiated
Prepayment |
- Prepayable at any time, subject to a fee, which
may be substantially greater than those associated
with Classic advances of the same maturity.
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| Risks |
- FHLB Boston does
not act as a financial adviser, and members should
independently evaluate the suitability and risks
of these advances. Please see the Flipper
Advance Primer for a discussion
of the risks and other considerations associated
with this product.
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| Payment of
Principal and Interest |
- Principal due at maturity and interest due monthly
on the second business day of the month.
- If canceled, principal and interest are due on the
cancellation date.
-
Interest is calculated on an actual/360-day basis
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| More Information |
- For details on the terms and conditions of the
Flipper, consult the Money Desk at
moneydesk@fhlbboston.com
or
1-800-357-3452; or contact your relationship manager.
- Learn more about the Flipper by viewing
our webinar presentation.
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