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Bulletin No.: 2015-29
October 20, 2015

TO: MEMBERS

SUBJECT: Reduced Borrowing Cost for Eligible Advances Funded During the Period from October 21 through December 31, 2015

During the period from October 21, 2015 through December 31, 2015, the Federal Home Loan Bank of Dallas (Bank) will reduce interest rates on most advances that have a maturity of one year or greater.

As announced in Bulletin No. 2015-26 from October 21, 2015 through December 31, 2015, the Bank will reduce the activity-based stock requirement on certain qualified advances from 4.1 percent to 2 percent. The total advances offered under this special program to the entire membership is $8 billion, of which $2 billion is reserved through December 1 for members whose assets fall below the three-year average asset cap for community financial institutions. This offer will be available through December 31, 2015, or until the funds available in the special offering are exhausted, whichever occurs first. For additional details regarding the terms of the special advances offering, please see Bulletin 2015-26.

In conjunction with the special reduced stock advances offering, the Bank will also reduce interest rates by two basis points (bps) on all Fixed-Rate and LIBOR Floating Rate advances with maturities of one year or greater, and on Discount Note Floating Rate advances that have maturities of one year or greater and which qualify for the reduced activity-based stock requirement. For the period from October 21 through December 31, 2015, or until the funds available in the reduced stock offering are exhausted, this two basis point reduction will be reflected in the rates posted on the Bank's website for advances.   

For Discount Note Floating Rate advances, the advances cost reduction is illustrated in the table below:

Maturity Current Spread to Index (bps)Reduced Spread (bps)Savings (bps)
Less Than 1 Year1010None
1 Year to 2 Years1082
Greater Than 2 Years15132

 

Similarly, the rate for Fixed Rate advances and LIBOR Floating Rate advances that have a stated maturity of one year or greater will reflect this interest rate reduction of two basis points.

To learn more about these offers and other Bank products and services, please contact Member Services at 844.FHL.BANK (844.345.2265). Thank you for your valued partnership.

 

Sincerely,

Kalyan Madhavan
Executive Vice President and Group Head, Members and Markets