Hybrid Rate Advances
Hybrid Rate Advances allow members to convert from floating to fixed rates, and to embed options into advances with highly customizable terms, protecting against rising or falling rates.
| Features | Putable Floating-to-Fixed Rate* | Net Interest Margin (NIM) Protection Advance* |
|---|---|---|
| Advance Code | A370 | A420 |
| Interest Rate Type | Floating, later converts to fixed | Floating, subject to bought/sold floors |
| Floating Rate Index | Actual Fed Funds Effective Rate or Secured Overnight Financing Rate (SOFR) | Secured Overnight Financing Rate (SOFR) |
| Interest Rate Cap(s) | ||
| Interest Rate Floor(s) | • | |
| Minimum Size | $5mm | $1mm |
| Term | 1 - 10 years | 180 days - 5 years |
| FHLBank Chicago Owned-Embedded Option | Putable on specified put date(s) | Member-sold interest rate floor |
| Member Owned Embedded Option | Member-bought interest rate floor | |
| Principal Repayment | At maturity | At maturity |
| Prepayment Fee | • | • |
| Symmetrical Prepayment Feature Availability | • | |
| Community Advance Eligibility | ||
| Activity Stock | 4.5% or 2% | 4.5% or 2% |
| Uses | Below-market funding, liquidity | Hedge interest-rate risk |
Same-day funding is available for transactions initiated prior to 3 p.m. (Central Time).
*The member must review and provide acknowledgement of a disclosure statement regarding the risks associated with this advance.
For additional information on advance products and terms, please contact your Sales Director or review the Member Products Guide. Product terms above are subject to change. Other terms may be available upon request.