August 2026 Peer Analysis and Balance Sheet Strategies Update
FHLBank Boston’s strategies team discusses what is occurring on depository member balance sheets and reviews important trends in the capital markets, economy, and banking industry.
Case Study: Identifying Value in Short-Term Floating-Rate Funding
This case study demonstrates that rolling short-term borrowings should not automatically default to traditional fixed-rate renewals. By understanding repricing risk, breakeven points, and funding objectives, institutions can make more informed and cost-effective funding decisions.
This case study examines whether newly originated residential mortgages should be held in portfolio or sold through the Mortgage Partnership Finance® (MPF®) 35 Program, emphasizing that a mortgage’s coupon rate alone does not determine its value. Using a sample $10 million mortgage pool, the analysis found that selling through MPF 35 and redeploying the proceeds generated significantly greater five-year economic value than holding the loans, while also transferring interest rate and prepayment risk.
May 2026 Peer Analysis and Balance Sheet Strategies Update
FHLBank Boston’s strategies team discusses what is occurring on depository member balance sheets and reviews important trends in the capital markets, economy, and banking industry.
Our Annual Report illustrates how the Bank’s steady financial performance and member partnerships are advancing New England’s economy and enabling us to fulfill our mission each day.
