Products & Services « Credit Products »

Credit Products

Standard Products

RepoPlus and Open RepoPlus

FHLBank Pittsburgh offers several RepoPlus products with rates that are competitive with the government repo market. RepoPlus loans may be used to fund mortgage pipelines and available-for-sale securities portfolios, assisting members in cash management and liquidity without the need to deliver collateral.

Mid-Term Repo

Mid-Term Repo loans give members the best of both worlds: they provide assistance with liquidity and cash management and asset and liability management. With maturities of from three months to three years, Mid-Term Repos can be either fixed or adjustable rate.

Long-Term Fixed-Rate Loans

For bullet funding with terms greater than three years, FHLBank offers members Long-Term Fixed-Rate Loans. To assist with asset and liability management, fixed-rate loans feature same-day funding or forward settlements up to two months, as well as maturities of from three to 30 years.

Long-Term Adjustable-Rate Loans

With terms available from three to ten years, Long-Term Adjustable-Rate Loans use a number of indices — Fed funds, Prime and LIBOR — to link loan rates to current market conditions. As with fixed-rate loans, adjustables feature same-day funding or forward settlements up to two months.

Fixed-Rate Amortizing Loans

Offering fixed monthly payment of principal and interest, this type of loan can be fully amortizing or structured with balloon payments to support many of your common asset structures.

Option Embedded Products

Hedge Select

The Hedge Select product features customizable loans with embedded options that allow members to meet funding needs and manage interest rate risk. These loans have either fixed or floating rates with embedded caps and floors. The fixed- or floating-rate spread will decrease by the amount the index sets above (cap) or below (floor) the predetermined strike rate. Various available structures include caps, floors, collars and corridors, as well as leveraged loans providing members extra protection through the use of an embedded leveraged hedge. Hedge Selects can be tailored with terms and strike rates to best fit member balance sheets.

Convertible Select

With Convertible Select loans, members gain the advantage of a below-market fixed rate in exchange for selling to FHLBank the option to convert the loan to a LIBOR adjustable-rate loan at a later time, which is preset by the member. If FHLBank exercises the conversion option, the member may select the adjustable-rate funding or return the funds at no charge. Convertible Selects are available with maturities ranging from one to 15 years, with lockout periods starting at three months. A popular variation is the Convertible Select with Strike Rate, which may be further combined with caps, floors and collars.

Returnable Loans

Returnable loans offer a fixed or adjustable rate that may, at the option of the member, be repaid without penalty on certain predetermined dates. Returnable loans may be useful for interest rate management or to fund assets that include prepayment options.

Other Products and Services

Letters of Credit

FHLBank's Letter of Credit (LOC) product can be used to improve the credit rating of certain transactions. The funds can be used for a number of business purposes including residential housing finance, asset/liability management, additional liquidity or funding management, community lending and certain taxable bond issues. Three types of LOCs are available to support FHLBank members:

• Confirming Letters of Credit
• Standby Letters of Credit
• Direct Pay Letters of Credit
• LOCs for Municipal Deposits

Now that legislation has expanded the list of collateral available to banks for securing deposits of public institutions, FHLBank LOCs may be used to secure municipal (public) deposits. Backed by a AAA rating, FHLBank LOCs provide the level of security desired by public institution depositors at all levels of government.

Bank4Banks

Bank4Banks.com, FHLBank's secure transactional Web site, can now be used for credit purposes. Member institutions can transact RepoPlus fixed-rate loans, obtain certain loan rates, and access current information about their loan portfolio, capital stock position or maximum borrowing capacity — all through Bank4Banks. Security is always a priority at Bank4Banks. The site's authentication process includes multiple verification steps, and all information is encrypted and securely transmitted.

Credit Assistance

FHLBank continues to develop new products and services to provide member financial institutions with even more flexibility and greater benefits. The Member Money Desk staff is available to help members determine the best options to meet their current funding requirements.

For more information on Credit products and services, members can contact the Bank’s Member Money Desk staff or their FHLBank relationship manager at 1-800-288-3400.

"Bank4Banks" is a registered trademark of the Federal Home Loan Bank of Pittsburgh.