Notes from the Funding Desk: Advance Specials Extended

With 2020 behind us, let’s prepare for new opportunities in 2021! During the fourth quarter of 2020, our members took advantage of discounted pricing on long-term funding through advance specials that were set to expire at the end of the year. Given the popularity, we are extending our advance specials through March 31, 2021.

Our advance specials provides a 5 basis point discount on our regular advance rate for qualified long-term funding.

Terms and Conditions

  • All advances must be fully capitalized and are not eligible for the Reduced Capitalization Advance Program (RCAP).
  • Members may execute multiple specials in a day, but individual terms apply and discounts cannot be combined.
  • Daily maximum of $50 million principal value inclusive of all three specials.
  • Eligible through March 31, 2021.


Top Member Strategies that Benefit from our Advance Specials

  • Investment Leverage – Match funding long-term fixed-rate securities such as MBS, CMBS, Municipal, and Corporate bonds is a popular strategy with many of our members. Additionally, some members take our fixed-rate advance, swap it to floating, and match fund a floating rate security. The matched cash flows under this special help generate locked-in spread income to support net interest margin (NIM), enabling you to hedge interest rate risk and benefit from asset duration.
  • CRE and Multi-family Loan Leverage – Our depository members actively utilize advances under these specials to fund long-term prepay protected commercial real-estate and multi-family loans. Safeguard your liquidity for the life of the loans through amortizing or fixed-rate advances with the specials to capture a stable NIM.
  • Forward Start Advances to Roll Upcoming Maturities – Capture today’s low rates for tomorrow’s needs. Many of our members used these specials to forward start an advance on the date of an upcoming funding maturity, such as the COVID-19 Relief advance. Save and ensure liquidity for the future. 
  • Extend Liability Duration to Help with ALM – Execute longer-term advances under these specials to increase liability duration. Members have taken advantage of the funding specials to create a more asset sensitive balance sheet. Let us help you meet your Asset Liability Management goals.

How to Transact

Terms and conditions are subject to change and are updated here. These advance specials are not eligible for RCAP.

Current advance rates pre-discount can be found on the daily rates sheet. To execute, you must call the Member Transaction Desk at 855.345.2244, option 1. Advances executed on eBanking are not eligible for the pricing discount.

Members can also add the symmetrical prepay feature to the advances, which allows them to prepay the advance and monetize your gains if rates rise by a sufficient amount.


Please reach out to your Sales Director with any questions.


Contact your Sales Director for more information.

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