Reminder: Advance Products with a LIBOR Component Changing July 1, 2020

  • June 26, 2020

As of July 1, 2020, advance products with a LIBOR component will be changing. Originally shared on September 27, 2019 and March 19, 2020, please see below for a helpful reminder on what is changing as part of our continuation of Federal Home Loan Bank System regulator LIBOR transition guidance.

What’s Changing: 

  • On July 1, 2020, we are restarting the Fixed Rate Putable Advance (A123) for all maturities as we’ve found a successful Overnight Index Swap (OIS) based hedge.
  • Members may execute certain Floating Rate Advances referenced to LIBOR with no tenor restriction as long as the transactions settle by June 30, 2020.
  • Beginning July 1, 2020, members can still transact certain Floating Rate Advances referenced to LIBOR as long as they mature by December 31, 2021.


LIBOR-Advance Products Table 1

What’s Not Changing: 

  • As of April 1, 2020, members may transact the below advance products with embedded LIBOR options but maturities are restricted to December 31, 2021.
  • The Floating-To-Fixed Rate Putable Advance (A370) remains suspended for all maturities after December 31, 2021 until we develop a successful hedge that is not based on LIBOR.
  • Member derivatives, such as caps, floors, and vanilla LIBOR swaps, are unrestricted as to maturity.


LIBOR-Advance Products Table 2

As a reminder, if you are looking to replace these products, Discount Note-indexed floaters, Prime-indexed floaters, and SOFR-indexed floaters are good alternatives to LIBOR floaters and are not subject to these maturity restrictions. Visit our advances page for a complete list of our advance product offerings. 

If you have questions regarding this communication or would like more details on the LIBOR transition, please contact your Sales Director.

Contact Us

Please direct all media and investor inquiries to:

Erin Kopecky
Vice President, Director, Communications
ekopecky@fhlbc.com
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12.565.5297