Funding Spread Lending Opportunities for Insurance Companies
As asset spreads become volatile and widen, insurance company members have several funding solutions to take advantage of spread lending opportunities. Whether the target assets are fixed-rate or floating-rate, with prepayable principal or in bullet structures, FHLBank Boston advances enable members to mitigate interest-rate risk and align asset and liability cash flows.
The Callable SOFR-Indexed Floater combines the benefits of long-term funding with adjustable-rate exposure, while also providing the flexibility to prepay without a fee at certain intervals.
A floating- to fixed-rate advance, the SOFR Flipper allows you to benefit from lower rates than would typically be available by selling the option to cancel the advance prior to maturity. You can tailor the maturity, lockout period, and cancellation frequency to meet your funding needs.
The DNA-Floater is an ideal product if you are seeking the liquidity benefits of long-term funding with adjustable rates and the flexibility to prepay without a fee.
Hedging Against Higher for Longer with Flexibility
Interest rates have not fallen as much as many expected at the beginning of 2025. The Member-Option Advance can help members manage interest-rate risk in a higher-for-longer environment while retaining flexibility to benefit in a down-rate scenario.
The SOFR Flipper Advance offers the potential for interest cost savings as market expectations for the timing and magnitude of potential rate cuts change.
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