Product Brochures - Federal Home Loan Bank of Des Moines

More documents

Recommendations

Info

Capped LIBOR AdvancesPRODUCTOverviewCapped LIBOR Advances are fixed term, non-amortizing advances with interest rates that adjustevery 30 or 90 days based on a predetermined spread to one- or three-month LIBOR. The advancerate is “capped” at the strike level chosen by the member plus the initial spread on the advance.Advance TypeCapped LIBORFunds AvailabilitySame dayTerm LimitationsRepricing every oneorthree- months for aterm of one year to 10yearsFEATURES• Capped LIBOR Advances are indexed to either one- or three- month LIBOR with terms upto 10 years and $100,000 minimum advance• Interest rate adjusts at the same frequency as the LIBOR Index• Maximum interest rate on the Capped LIBOR Advance is the LIBOR cap rate plus orminus the spread to LIBOR quoted at advance origination• Matches the return on many variable rate mortgage backed security products• Repricing will occur two New York and London business days prior to the actual reset date• Community Investment Advance pricing available with approved application• Subject to prepayment fee if repaid prior to maturity dateMinimumRequirementMinimum $100,000Interest BillingAt reset dateAvailable for CIAYes, with approvedapplicationExampleA member displays a liability sensitive interest rate risk position. The short term nature of theinstitution’s liability portfolio leads to balance sheet underperformance in rising rate environmentsas the volume of maturing/repricing liabilities is larger than the volume of maturing/repricing assets.The member could use a Capped LIBOR Advance to manage the interest rate risk associated withtheir extended asset base duration created by originating and holding fixed rate loans. Shouldinterest rates rise for an extended period of time, the member will benefit as the rate on the CappedLIBOR Advance can not escalate above the cap rate plus the initial spread.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Rates Variable/FixedVariableQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12
Prime Rate AdvancesPRODUCTOverviewPrime Rate Advances provide a great source of adjustable rate financing, six-, 12-, 18- and 24-month terms, priced at a spread to the Prime Rate*. It is a great way to fund loans indexed toPrime and to fund agricultural operating lines of credit. Whenever the Prime Rate changes theadvance rate is reset, so pricing adjusts automatically to changing market conditions.Advance TypePrime RateFunds AvailabilitySame dayTerm LimitationsSix-, 12-, 18- or24- monthsMinimumRequirement$100,000FEATURES• Fixed term, adjustable rate• Advance rate resets as Prime changes• Community Investment Advance pricing available with approved application formaturities of one year or more• Subject to prepayment fee if repaid prior to maturity dateExampleThe Prime Rate Advance is a useful funding tool and can be used to finance operational,commercial, agricultural or home equity loans. In today’s competitive marketplace, indexing loanrates to Prime* allows members to efficiently fund loans and, at the same time, minimize interestrate risk.Interest BillingEnd of month*Prime as defined by the USD-Prime-H.15 as published in Federal Reserve Statistical Release H.15.Certain restrictions apply. Please reference the Bank’s Member Products Policy and Collateral Procedures.Available for CIAYes, with approvedapplication (termsone year or more)Rates Variable/FixedVariableQUESTIONSPlease call the MoneyDesk at 800.544.3452,ext. 1013 or emailmoneydesk@fhlbdm.com6/1/12
Page 2 and 3: Overnight AdvanceThe Overnight Adva
Page 4 and 5: Long-term Fixed-Rate AdvancesPRODUC
Page 8: Member Option Variable-Rate Advance
Page 13: Community InvestmentResidential Len
Page 16 and 17: Member Financial ServicesSETTLEMENT
Page 18: Frequently Asked QuestionsBelow are

Product Brochures - Federal Home Loan Bank of Des Moines

Create successful ePaper yourself

Delete template?

Save as template?