Symmetrical Fixed Rate Bullet Advances
Symmetrical long-term fixed-rate advances offer fixed-rate liabilities available in numerous maturities where the member will have an opportunity to realize a gain from a rise in interest rates when the advance is prepaid.
This advance:
- Aids balance sheet restructuring and helps lessen interest rate risk exposure by lengthening liabilities and
- Is competitive with deposits and assists in the stabilization or reduction of interest-rate risk.
| Term |
Typical maturities from 1-Year to 10-Years |
| Rate |
An additional spread will be applied to the fixed-rate bullet advance rate offered to the member in exchange for the right to receive a prepayment credit in certain market conditions |
| Interest is Paid |
Monthly |
| Principal is Paid |
At Maturity |
| Principal Prepayment Policy |
The advance termination fee will be the greater of ten (10) basis points multiplied by the advance principal balance or 10% of the absolute value of the difference between the present value of the advance and its principal balance |
| Application |
Call FHLBank Indianapolis by 10:00 am ET for same banking day funding |