Federal Home Loan Bank of Seattle >> What Counts Newsletter

July 2006


	Fighting Fire With Fire: Using "Returnable" Advances

Timely Wholesale Funding Strategies 3:Using Returnable Advances to Mitigate Prepayment Risk


	Seattle Bank Yield Curve Optimal Points Analysis

Select Forecasts of Key Economic Statistics

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Fighting Fire With Fire: Using "Returnable" Advances

by Roy Hingston

Most financial institutions like mortgage loans as high-quality assets and would love to put them on the books, but struggle with the associated interest-rate-risk exposure, which can last as long as 30 years or pay off in just a few years. More >

Timely Wholesale Funding Strategies 3:Using Returnable Advances to Mitigate Prepayment Risk

Would your financial institution suffer any ill affects if interest rates were to decline? Are any of your “A”-credit, fixed-rate commercial borrowers starting to question the presence of loan prepayment penalties? How quickly would your fixed-rate mortgage portfolio pay down during a rate decline? Would you be left with expensive funding and no assets to show for it? Things might be different, if you had the right to terminate the funding. More >

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The Federal Home Loan Bank of Seattle ("Seattle Bank") publishes What Counts for educational and promotional purposes only. The data and analysis presented are based upon information obtained from sources that we consider reliable. The opinions expressed represent the current opinions of our staff and are subject to change without notice. We make no warranties, express or implied, regarding the accuracy or completeness of any information, analysis, or opinions presented. No part of this newsletter may be reproduced in any manner without the written permission of the Seattle Bank. The Seattle Bank, its employees, agents, and contractors are not registered investment advisors, financial advisors, or broker dealers, and they are not acting in a fiduciary capacity. The information contained in this newsletter does not constitute a recommendation, offer to sell, or solicitation of an offer to purchase any particular investments or products, including without limitation securities of any companies discussed, and it should not be construed as such. It is the reader’s responsibility to evaluate the suitability, risks, and merits of any investment, funding strategy, or business proposal presented in this newsletter.

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