Changes approved to the Member Products Policy
January 29, 2014
At its recent meeting, FHLBank Topeka’s Board of Directors approved a change to its Member Products Policy. Details are available in the online Member Products and Services Guide (MPSG). Policy changes are effective immediately.
New Product
Symmetrical Fixed Rate Advances – Symmetrical fixed rate advances (SFA), allow members and housing associates the opportunity to take down an advance with a symmetrical prepayment fee. The symmetrical fixed rate advance provides members and housing associates with fixed-rate term funding with the contractual ability to realize a gain from the market movement of interest rates. This product works well for repositioning the balance sheet and offsetting investment portfolio losses with a gain on the advance in a rising interest rate environment. The minimum SFA is $2.5 million.
Changes to Minimum Advance Size on Certain Advance Products
Minimum Advance Size Lowered – The minimum size on convertible, forward settling advance commitments and other structured advances has decreased from $5 million to $2.5 million. The minimum size was lowered to allow more members and housing associates to take advantage of these types of advances.
If you have any questions about this policy change, please contact your regional account manager or the Lending Desk at 800.809.2733.