Beat the Spread - A Strategy to Secure Low-Cost Funding

last updated on Friday, August 8, 2025 in Strategies

Brett L.A. Manning, Funding Products Group Director
Brandon Casey, Member Solutions

If your institution is in the market for low-cost, long-term funding, the Federal Home Loan Bank of Des Moines has a strategy for you to lock in and “Beat the Spread”. 

What do you need to execute this strategy? Your institution will need accounting expertise for implications of using derivatives in addition to leveraging your available access to FHLB Des Moines. Together, we can help find the absolute lowest funding cost possible. 

What does the “Beat the Spread” strategy entail? By combining a long-term fixed-rate swap with a short-term FHLB Des Moines advance, your institution can lock in funding below the cost of the corresponding advance term.

In this "Beat the Spread" whitepaper, you'll learn:

• The advantages of utilizing a Beat the Spread strategy with FHLB Des Moines.
• An execution plan for your institution on implementing the strategy.
• Funding options for long-term financial success.

Download the Whitepaper

TAGS

1. Funding
2. Solutions
3. Strategies