FDIC Offers $1 Billion Bonds Secured By Assets from Bank Failures

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WALL STREET – The FDIC plans to sell almost $1 billion of securities tied to residential and commercial real-estate debt once held by failed banks, which will be federally guaranteed, just like NCUA’s corporate bonds.

The FDIC is offering bonds from three securitizations through Barclays Capital. Two are tied to residential debt, and total $160.2 million and $135.7 million, the person said. An additional $679 million of bonds are tied to commercial-property debt.

In March, the FDIC began raising cash through the bond market for the first time since the early 1990s. The banking agency has completed sales this year have totaled more than $4.15 billion.

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