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* | Floating-to-Fixed Rate* | Capped Floater* | Collared Advance* | Net Interest Margin Protection* |
|---|---|---|---|---|---|
| Advance Code | A370 | A371 | A390 | A402 | A420 |
| Minimum Size | $5mm | $5mm | $5mm | $5mm | $5mm |
| Term | 1–10 years | 1–20 years | 180 days–10 years | 1–10 years | 180 days–10 years |
| Same-Day Funding (prior to 3:00 p.m.) | • | • | • | • | • |
| Available for Community Advances | • | • | • | • | |
| Rate Type | Floating; later converts to fixed | Floating; later converts to fixed | Fixed spread to floating index | Floating within collar | Floating within collar |
| Rate Cap | • | • | • | ||
| Rate Floor ( > 0%) | • | • | |||
| Repayment | At maturity | At maturity | At maturity | At maturity | At maturity |
| Prepayment Fee | • | • | • | • | • |
| Symmetrical Prepayment Feature | • | ||||
| Put Option Owned by FHLBank Chicago | • | ||||
| Activity Stock | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% | 4.5% or 2% |
| Benefits | Below-market funding, liquidity | Below-market funding, liquidity | Hedge duration/convexity | Hedge duration/convexity | Hedge duration/convexity |
* From now until March 31, 2020, members can continue to execute the advance products with a LIBOR component with no tenor restrictions as long as the transactions settle by March 31, 2020. Beginning April 1, 2020, members can still transact the indicated advance products with a LIBOR component as long as they mature by December 31, 2021. Beginning April 1, 2020, transactions with maturities settling beyond December 31, 2021, are expected to be suspended.
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.