Products and Solutions Guide - Federal Home Loan Bank of Boston

Long-Term Variable-Rate Indexed Advances – Flipper Advance with Guaranteed FlipFlipper Advance withGuaranteed FlipNonamortizing, floating-to-fixed-rateadvance. During the floating-rate period,the advance rate will adjust periodicallyaccording to changes in LIBOR andgenerally be sub-LIBOR (the spread toLIBOR is determined by the member).After the floating-rate period, it will flip to apredetermined fixed rate until maturity.Common Uses• Generally used in a flat yield curveenvironment when margins are underpressure. Sub-LIBOR funding for thefloating-rate period is available.• Manage interest-rate risk.Terms• Maturities are available for terms out to 20 years. Youmay choose a floating-rate period of three months to 10years.• The interest rate can reset at a rate less than zero.• After the floating-rate period, the advance will convert to apredetermined fixed-rate advance until maturity.DisbursementFunds are available two business days after the trade date.Principal and Interest• The principal is due at maturity. Interest is due monthlyon the second business day of the month.• During the floating-rate period, the advance rate adjustsmonthly or quarterly, depending on the index you choose,on indicated reset dates, based on LIBOR.• Interest is calculated on an actual/360-day basis.PrepaymentAdvance may be prepaid, subject to a fee. Please see theFlipper Advance with Guaranteed Flip Confirmation formore information on prepayment fees.Additional InformationFor further details, including comments on risks, please seeFlipper Advance with Guaranteed Flip.credit productsMain Telephone: 617-292-9600 • Customer Service: 1-800-358-9709 • Money Desk: 1-800-357-3452 • Relationship Managers, MPF, and Housing & Community Investment: 1-888-424-3863 26