8-K 1 a10-16671_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) August 25, 2010

 


 

FEDERAL HOME LOAN BANK OF BOSTON

(Exact name of registrant as specified in its charter)

 


 

Federally chartered corporation

 

000-51402

 

04-6002575

(State or other jurisdiction

 

(Commission File Number)

 

(IRS Employer

of incorporation)

 

 

 

Identification No.)

 

111 Huntington Avenue
Boston, MA 02199
(Address of principal executive offices, including zip code)

 

(617) 292-9600
(Registrant’s telephone number, including area code)

 

Not Applicable
(Former name or former address, if changed since last report)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.03.         Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

 

The Federal Home Loan Bank of Boston (the Bank) obtains most of its funds from the sale of debt securities, known as consolidated obligations, in the capital markets. Consolidated obligations, which consist of bonds and discount notes, are by regulation the joint and several obligations of the 12 Federal Home Loan Banks (the FHLBanks). Consolidated obligations are sold to the public through the FHLBanks’ Office of Finance using authorized securities dealers.

 

The FHLBanks are regulated by the Federal Housing Finance Agency (the Finance Agency) and the Finance Agency regulations authorize the Finance Agency to require any FHLBank also to repay all or any portion of the principal of or interest on any or all consolidated obligations for which any other FHLBank is the primary obligor. In other words, the Bank is jointly and severally liable with the other FHLBanks for any and all payments due on all of the consolidated obligations issued by the FHLBanks, regardless of whether the Bank receives all or any portion of the proceeds from any particular issuance. Information regarding historical, current, and future issuances of consolidated obligations by the FHLBanks may be obtained from the Office of Finance (http://www.fhlb-of.com).  Further, consolidated obligations are backed only by the financial resources of the FHLBanks and are not guaranteed by the United States government.

 

Schedule A sets forth all consolidated obligation bonds and discount notes committed to be issued by the FHLBanks, for which the Bank is the primary obligor, on the trade dates indicated, other than discount notes with a maturity of one year or less that are issued in the ordinary course of business. [Schedule A also includes any consolidated obligations with a remaining maturity in excess of one year, if any, for which we have assumed the primary repayment obligation from another FHLBank.]

 

We may elect to change our method of reporting information on the issuance or assumption of consolidated obligations at any time. In reviewing the information in this Current Report on Form 8-K, please note:

 

·                  although certain aggregated issuances of consolidated obligations are material to the Bank, we have not made a judgment as to the materiality of any particular consolidated obligation or obligations;

·                  Schedule A does not address any interest-rate-exchange agreements (or other derivative instruments) that we may enter into as a result of our asset and liability-management strategies and that may be associated, directly or indirectly, with one or more of the reported consolidated obligations;

·                  Schedule A will not enable a reader to track changes in the total consolidated obligations outstanding for which we are the primary obligor because Schedule A generally excludes consolidated obligation discount notes with a maturity of one year or less and does not reflect whether the proceeds from the issuance of the reported consolidated obligations will be used to, among other things, replace called or maturing consolidated obligations. We will report the total consolidated obligations outstanding for which we are the primary obligor in our periodic reports filed with the Securities and Exchange Commission; and

·                  the principal amounts reported on Schedule A represent the principal amount of the reported consolidated obligations at par, which may not correspond to the amounts reported in our financial statements prepared in accordance with generally accepted accounting principles contained in our periodic reports filed with the Securities and

 

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Exchange Commission, because the par amount does not account for, among other things, any discounts, premiums, or concessions.

 

Schedule A

 

TRADE
DATE

 

CUSIP

 

SETTLEMENT
DATE

 

MATURITY
DATE

 

NEXT PAY
DATE

 

CALL TYPE
(1)

 

CALL
STYLE
(2)

 

RATE
TYPE/RATE
SUB-TYPE
(3)(4)

 

NEXT
CALL
DATE

 

COUPON
PCT

 

BANK PAR
($)

08/25/2010

 

313370U89

 

09/22/2010

 

09/22/2015

 

03/22/2011

 

Optional Principal Redemption

 

Bermudan

 

Fixed Step Up

 

10/22/2010

 

1.300

 

50,000,000

08/25/2010

 

313370U97

 

09/15/2010

 

09/26/2011

 

12/15/2010

 

Optional Principal Redemption

 

Bermudan

 

Fixed Constant

 

10/15/2010

 

0.430

 

1,000,000,000

08/26/2010

 

313370U89

 

09/22/2010

 

09/22/2015

 

03/22/2011

 

Optional Principal Redemption

 

Bermudan

 

Fixed Step Up

 

10/22/2010

 

1.300

 

25,000,000

08/26/2010

 

313370VF2

 

09/14/2010

 

09/14/2015

 

03/14/2011

 

Optional Principal Redemption

 

Bermudan

 

Fixed Step Up

 

10/14/2010

 

1.125

 

50,000,000

08/27/2010

 

313370LB2

 

09/01/2010

 

09/13/2013

 

03/13/2011

 

Non-Callable

 

N/A

 

Fixed Constant

 

N/A

 

1.000

 

100,000,000

08/27/2010

 

313370VN5

 

09/01/2010

 

09/01/2011

 

03/01/2011

 

Non-Callable

 

N/A

 

Fixed Constant

 

N/A

 

0.330

 

200,000,000

08/27/2010

 

313370VS4

 

09/23/2010

 

12/23/2015

 

03/23/2011

 

Optional Principal Redemption

 

Bermudan

 

Fixed Step Up

 

12/23/2010

 

1.250

 

15,000,000

08/27/2010

 

313370VX3

 

09/20/2010

 

09/20/2013

 

03/20/2011

 

Optional Principal Redemption

 

Bermudan

 

Fixed Step Up

 

10/20/2010

 

0.750

 

35,000,000

08/27/2010

 

313370W46

 

09/01/2010

 

08/28/2015

 

02/28/2011

 

Non-Callable

 

N/A

 

Fixed Constant

 

N/A

 

1.700

 

10,000,000

08/27/2010

 

313370W53

 

09/01/2010

 

08/26/2016

 

02/26/2011

 

Non-Callable

 

N/A

 

Fixed Constant

 

N/A

 

2.040

 

15,000,000

 


(1)     Call Type Description:

 

·                  Optional Principal Redemption bonds (callable bonds) may be redeemed by the Bank in whole or in part at its discretion on predetermined call dates, according to the terms of the bond.

·                  Indexed Amortizing Notes (indexed principal redemption bonds) repay principal based on a predetermined amortization schedule or formula that is linked to the level of a certain index, according to the terms of the bond.

·                  Scheduled Amortizing Notes repay principal based on a predetermined amortization schedule, according to the terms of the bond.

 

(2)          Call Style Description: Indicates whether the consolidated obligation is redeemable at the option of the Bank, and if so redeemable, the type of redemption provision. The types of redemption provisions are:

 

·                  Americanredeemable continuously on and after the first redemption date and until maturity.

·                  Bermudan — redeemable on specified recurring dates on and after the first redemption date, until maturity.

 

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·                  European — redeemable on a particular date only.

·                  Canary — redeemable on specified recurring dates on and after the first redemption date until a specified date prior to maturity.

·                  Multi-European — redeemable on particular dates only.

 

(3)          Rate Type Description:

 

·                  Conversion bonds have coupons that convert from fixed to variable, or variable to fixed, or a mix of capped coupons and non-capped coupons, or from one variable type to another, or from one U.S. or other currency index to another, according to the terms of the bond.

·                  Fixed bonds generally pay interest at constant or stepped fixed rates over the life of the bond, according to the terms of the bond.

·                  Variable bonds may pay interest at different rates over the life of the bond, according to the terms of the bond.

 

(4)          Rate Sub-Type Description:

 

·                  Constant bonds generally pay interest at fixed rates over the life of the bond, according to the terms of the bond.

·                  Step Down bonds generally pay interest at decreasing fixed rates for specified intervals over the life of the bond, according to the terms of the bond.

·                  Step Up bonds generally pay interest at increasing fixed rates for specified intervals over the life of the bond, according to the terms of the bond.

·                  Step Up/Down bonds generally pay interest at various fixed rates for specified intervals over the life of the bond, according to the terms of the bond.

·                  Zero Coupon bonds earn a fixed yield to maturity or the optional principal redemption date, according to the terms of the bond, with principal and interest paid at maturity, or upon redemption to the extent exercised prior to maturity.

·                  Capped Floater bonds have an interest rate that cannot exceed a stated or calculated ceiling, according to the terms of the bond.

·                  Dual Index Floater bonds have an interest rate determined by two or more indices, according to the terms of the bond.

·                  Leveraged/Deleveraged bonds pay interest based on a formula that includes an expressed multiplier, according to the terms of the bond: multiplier > 1 = leveraged, multiplier < 1 = deleveraged.

·                  Inverse Floater bonds have an interest rate that increases as an index declines and decreases as an index rises, according to the terms of the bond.

·                  Stepped Floater bonds pay interest based on an increasing spread over an index, according to the terms of the bond.

·                  Range bonds may pay interest at different rates depending upon whether a specified index is inside or outside a specified range, according to the terms of the bond.

·                  Single Index Floater bonds pay interest at a rate that increases as an index rises and decreases as an index declines, according to the terms of the bond.

·                  Ratchet Floater bonds pay interest subject to increasing floors, according to the terms of the bond, such that subsequent coupons may not be lower than the previous coupon.

 

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Signature(s)

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Federal Home Loan Bank of Boston

 

 

 

Date: August 31, 2010

By:

/s/ Brian G. Donahue

 

 

Brian G. Donahue

 

 

First Vice President, Controller and Chief Accounting Officer

 

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