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 Forward Starting Advance allows members to lock in a rate today for an advance that settles at a future date. It provides the ability to delay taking down funding while hedging against rising rates, preparing for future loan growth and protecting against potential deposit runoff.
The Symmetrical Prepayment Advance is the ultimate advance option if you are seeking flexibility and diversification with the potential to supplement earnings in a rising-rate environment.
NEF Advances are specifically offered to members to use to support affordable housing initatives that benefit Comprehensive Permit (40B) developments in Massachusetts and Rhode Island.
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