1331463--3/22/2010--Federal_Home_Loan_Bank_of

related topics

{loan, real, estate}

{capital, credit, financial}

{loss, insurance, financial}

{stock, price, share}

{regulation, change, law}

{condition, economic, financial}

{system, service, information}

{financial, litigation, operation}

{tax, income, asset}

{acquisition, growth, future}

{debt, indebtedness, cash}

{investment, property, distribution}

The Bank is subject to credit risk exposures related to the mortgage loans that back its MBS investments. Increased delinquency rates and credit losses beyond those currently expected may adversely impact the yield on or value of those investments. Investment rating downgrades and decreases in the fair value of the Bank's investments may increase the Bank's risk-based capital requirement. Rising delinquency rates on the Bank's investments in MPF loans may adversely impact the Bank's financial condition. Declines in the value of mortgage loans that serve as collateral may adversely impact the Bank's business operations and/or financial condition. The Bank has geographic concentrations that may adversely impact its business operations and/or financial condition. As mortgage servicers continue their loan modification and liquidation efforts, the yield on or value of the Bank's MBS investments may be adversely impacted. Counterparty credit risk could adversely impact the Bank. The Bank relies upon derivative instruments to reduce its interest-rate risk, however the Bank may not be able to enter into effective derivative instruments on acceptable terms. Changes in the Bank's or other FHLBanks' credit ratings or other negative news may adversely impact the Bank's cost and availability of financing. The Bank may fail to meet its minimum regulatory capital requirements and/or maintain a capital classification of adequately capitalized, which would result in prohibitions on dividends, excess capital stock repurchases, and capital stock redemption and could result in additional regulatory prohibitions. The board of directors' decisions not to declare dividends may decrease demand for advance products and increase membership withdrawals. The Bank's moratorium on excess stock repurchase may decrease demand for advance products and increase membership withdrawals. The loss of significant members may result in lower demand for the Bank's products and services. The Bank is subject to a complex body of laws and regulations, which could change in a manner detrimental to the Bank's business operations and/or financial condition The Bank faces competition for loan demand and loan purchases, which could adversely impact results of operations Proposed legislation in response to the U.S. housing and economic recession may adversely impact the Bank's advance business and investments. Compliance with regulatory contingency liquidity guidance could adversely impact the Bank's results of operations. The Bank may not be able to realize the goals of the revised operating plan. The Bank faces competition for loan demand and loan purchases which could adversely impact results of operations. Required AHP contribution rates could decrease available funds to pay as dividends to members. Any inability of the Bank to access the capital markets could adversely impact its business operations, financial condition, and results of operations. The Bank faces competition for loan demand and loan purchases that could adversely impact results of operations. The Bank's efforts to maintain adequate capital levels could hamper its ability to generate asset growth including, but not limited to, meeting member advance requests. Additional declines in U.S. home prices or in activity in the U.S. housing market could adversely impact the Bank's business operations and/or financial condition. The Bank is subject to credit risk exposures related to the mortgage loans that back its MBS investments. Increased delinquency rates and credit losses beyond those currently expected may adversely impact the yield on or value of those investments The recent announcements by Fannie Mae and Freddie Mac that they intend to purchase seriously delinquent loans at par value from MBS pools may adversely impact the Bank's financial performance. The public perception of GSEs may adversely impact the Bank's funding costs. The Bank may become liable for all or a portion of the consolidated obligations of the FHLBanks, which could adversely impact the Bank's financial condition and results of operations. Changes in interest rates could adversely impact the Bank's financial condition and results of operations. The Bank relies heavily upon information systems and other technology and any failure of such information systems or other technology could adversely impact the Bank's financial condition and results of operations. The Bank relies on the FHLBank of Chicago in participating in the MPF program in that FHLBank's capacity as MPF provider and could be adversely impacted if the FHLBank of Chicago changed or ceased to operate the MPF program, or experienced information systems or other technological interruptions, or failures in its capacity as MPF Provider. The Bank relies on models to value financial instruments and the assumptions used may have a significant effect on the Bank's financial position, the results of operations, and the assessment of risk exposure.

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1331463--3/22/2010--Federal_Home_Loan_Bank_of_Boston