Log In  |  Search 
Logotop banner
 
CREDiT PRODUCTS
Overview
  Advance Restructuring
  Amortizing Advance
  Capped Floater Advance
  Classic Advance
  Classic Plus Cap Advance
  Collar Advance
  Corridor Advance
  Curve Flattener Advance
  Curve Steepener Advance
  Daily Cash Manager
  Discount Note Auction-Floater
  Expander Advance
  Flipper Advance
  Flipper Advance with Guaranteed Flip
  HLB-Option Advance
  HLB-Option Plus Cap Advance
  IDEAL Cash Manager
  Knockout Advance
  Letters of Credit
  LIBOR-Indexed Advance
  Member-Option Advance
  Rollover Cash Manager
  Slider Advance
  Swaps, Caps, and Floors
  Symmetrical Prepayment
  Transaction Hours
SPECIALS
CORRESPONDENT SERVICES
MORTGAGE PARTNERSHIP FINANCE
Funding-Strategy Models
PRODUCTS AND SOLUTIONS GUIDE
ACTIVITY-BASED STOCK REQUIREMENT

DISCOUNT NOTE AUCTION-FLOATER

Fixed-term advance with an interest rate that adjusts according to changes in the Federal Home Loan Bank System's Office of Finance discount-note auction rates.

 Key Features
  • Adjustable rate

  • Fixed term

  • Nonamortizing
   
Key Advantages
  • Long-term funding commitment at short-term rates.

  • Typically lower all-in rate than LIBOR.
   
Common Uses
  • Manage balance-sheet interest-rate sensitivity.

  • Manage liquidity needs.
   
Maturities
  • Terms out to 20 years.
   
Index
  • Office of Finance four- and 13-week discount-note auctions.
   
Minimum
  • $10 million minimum but smaller requests may be accommodated in special offerings.
   
Disbursement
  • Next day
   
Risks
  • The Federal Home Loan Bank of Boston does not act as a financial adviser, and members should independently evaluate the suitability and risks of these advances. Please see the Discount Note Auction-Floater Advance Primer for a discussion of the risks and other considerations associated with the Discount Note Auction-Floater advance.
   
Rate-Reset Frequency
  • Every four or 13 weeks on an indicated reset date, based on the result of the prior day's discount-note auction, plus a predetermined spread.

  • Spread to the index is locked-in for the full term of the advance.
   
Payment of Principal and Interest
  • Principal due at maturity.

  • Interest due on rate-adjustment date.
   
Prepayment
  • Prepayable in full or in part on reset date without fee, or at any other time, subject to a fee. Partial prepayments may be in amounts as small as $100,000 and in intervals of $100,000 thereafter.
   
Forward Rate Commitments
  • Not available
   
More Information
  • For more information, contact the Money Desk at moneydesk@fhlbboston.com or
    1-800-357-3452.

  • Advance fact sheet (and historical correlation - 2000-present - between Discount Notes and LIBOR)

 

 

 
 
Rates Specials
Membership
Products and Solutions Guide
Forms and Applications