Protects against falling rates

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  • Andrew Paolillo

    Mortgage Portfolio Optimization

    In addition to selling new production loans through the Mortgage Partnership Finance® (MPF®) Program, selling seasoned loans can be a useful tool to navigate different risks and adjust the composition of both the asset and liability sides of the balance sheet.

  • MPF 35 and Credit Risk Sharing

    The MPF Program uses a layered credit enhancement structure in which losses are absorbed sequentially by borrower equity, private mortgage insurance (if applicable), the First Loss Account, the PFI’s Credit Enhancement Obligation, and finally FHLBank Boston.

  • Case Study: Mortgage Hold vs. Sell Analysis

    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.

  • Andrew Paolillo

    Non-Match Funded Strategies for Insurance Companies

    The deep menu of FHLBank Boston advance products affords insurance company members the ability to use funding in both strategic and tactical ways.

  • Caroline Casavant

    How it Works: Mortgage Partnership Finance® (MPF®) Program

    The Mortgage Partnership Finance® (MPF®) Program supports FHLBank Boston members in extending housing financing to their communities. MPF allows members to access liquidity, tailor risk, and focus on their competitive advantage: credit risk in their communities.

  • Case Study: Aligning Prepayment Risk Across the Balance Sheet

  • Caroline Casavant

    Inflation Expectations, Interest-Rate Volatility, and Considerations for Funding

    Operation Epic Fury in Iran has coincided with a surge in oil price volatility, a widening of Treasury Inflation-Protected Securities (TIPS)-implied breakevens, and an increase in Treasury yields, particularly at the front end of the curve. Depository institutions should review their assumptions about the distribution of interest-rate outcomes this year and consider how they are positioned to perform if interest-rate volatility continues to trend upward. FHLBank Boston can help banks and credit unions maintain funding stability and balance sheet resilience amid rising-rate uncertainty.

  • Tyler Buckeridge

    Strategic Implications of Commercial Real Estate Loan Repricing Wave

    Over the next two years, commercial real estate (CRE) loans originated from 2020 through 2022 will reprice into a very different rate and macro environment. How that repricing wave affects debt-service coverage ratios (DSCRs), valuations, earnings, and capital, and putting the right credit, liquidity, and funding strategies in place – including leveraging FHLBank Boston products – while the planning window is still open is crucial.