Back

FLIPPER ADVANCE

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
  • Sub-LIBOR indexed adjustable rate funding during the lockout period.
  • Nonamortizing
   
Common Uses
  • Macrofund balance sheet.
  • Provide sub-LIBOR funding for a specified period.
   
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.
   
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.
   
Cancellation
  • FHLB Boston may cancel the advance at the end of the lockout period.
  • 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.
   
Availability
  • Available any business day until 1 p.m.
   
Disbursement
  • Second-day
   
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.
   
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.
   
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.
   
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.
   
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
   
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.