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.
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.
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.
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.
