The recent bond offering by Federal Home Loan Bank of New York sheds light on the various call options available for investors.
This offering includes non-callable fixed-rate bonds with a coupon rate of 3.5%.
Investors have the opportunity to participate in indexed amortizing notes and scheduled amortizing notes, each with unique repayment structures.
Call Type Description
Optional Principal Redemption bonds offer the Bank the discretion to redeem bonds on predetermined call dates. Indexed Amortizing Notes repay principal based on a predetermined amortization schedule. Scheduled Amortizing Notes repay principal based on a set schedule.
Call Style Description
The call style describes the redemption provisions of the bonds, including American, Bermudan, European, Canary, and Multi-European options.
Rate Type Description
The bond offerings include conversion bonds, fixed-rate bonds, and variable rate bonds, each with distinct interest payment structures.
Rate Sub-Type Description
Constant, Step Down, Step Up, Step Up/Down, Zero Coupon, Capped Floater, Dual Index Floater, Leveraged/Deleveraged, Inverse Floater, Stepped Floater, Range, Single Index Floater, and Ratchet Floater bonds are among the rate sub-types available.
- The diverse range of bond options provides investors with flexibility in choosing securities that align with their risk tolerance and investment goals.
- Investors can capitalize on the varying interest payment structures offered by the different bond types to optimize their portfolio returns.
Federal Home Loan Bank of New York's bond offering presents an array of investment opportunities with distinct features and call options. Investors can strategically leverage these options to diversify and enhance their portfolios.