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.
- 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.
||Typical maturities from 1-Year to 10-Years
||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
|Principal is Paid
|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
||Call FHLBank Indianapolis by 10:00 am ET for same banking day funding