Derivatives

FHLB Dallas offers interest-rate swaps that members may use in either asset/liability management or business development initiatives.

Interest-Rate Swaps

Interest-Rate Swaps either provide a member the ability to synthetically fix floating-rate assets or liabilities or synthetically float fixed-rate assets or liabilities. Swaps are generally utilized for asset/liability management purposes or as a business development tool. As a business development tool, swaps allow members to provide their customers with long-term, fixed-rate financing while incurring the interest rate risk typical of a floating-rate loan. Interest-rate swaps are available for amortizing schedules, allowing members to make equal payments throughout the term, or bullet maturities, in which full payment is due at the end of the term.