Credit Products
The Callable Adjustable Rate Credit Advance
The Callable ARC is available with the Secured Overnight Financing Rate (SOFR) index with the following product structures:
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Callable ARC Advance: 1-Month Call at the End |
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Terms |
4-month minimum term |
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| Available Indices | SOFR | |
| Maturities | 3-year maximum term for Callable advances tied to SOFR | |
| Option Structure | One time European (Euro) call option | |
| Example | 4 months Non-Call 3 months (4mNC3m) (Euro) |
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Callable ARC Advance: 1-Year Call at the End |
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Terms |
3-year minimum term |
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| Available Index | SOFR | |
| Maturity | 3-year is the maximum term (at this time) | |
| Option Structure | One time European (Euro) call option | |
| Example | 3 year Non-Call 2 year 3yNC2y (Euro) |
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Advantages of the Callable ARC Advance:
- Respond to changes in liquidity profile: If you no longer require floating-rate funding, the Callable ARC provides the flexibility to extinguish the advance at no cost on its call date. Should you require liquidity of a longer-term, you can extinguish at the call date and rebook an advance of a longer tenor.
- Manage Balance Sheet and Capital Levels: Affords you with the ability to manage your balance sheet and capital levels more tightly.
- Match Fund Floating Rate Assets: The Callable ARC can be linked to the SOFR index, which can enable you to match the interest rate characteristics of floating-rate assets.
- Capitalize on Market Volatility: Should the pricing level on the ARC advance improve or worsen with market volatility, members have the flexibility of either extinguishing the advance and rebooking at more advantageous levels or maintaining the advance to its original contractual maturity.
If you would like additional information on the Callable ARC Advance, please contact a Relationship Manager at (212) 441-6700 or a Member Services Desk Representative at 1-800-546-5101, option 1.
Disclaimer: Notwithstanding any language to the contrary, nothing contained in this disclosure is intended to constitute an offer, inducement, promise, or contract of any kind. This product description and pricing may be subject to change without notice.
The content provided in this disclosure is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The Federal Home Loan Bank of New York (FHLBNY) makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.
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