Latest Offering Of Corporate Bonds Brings Total To $23 Billion
WALL STREET – NCUA plans to sell another $1.1 billion of NCUA Guaranteed Notes, making almost $23 billion raised from the sale of the bonds backed by failed corporate credit union assets.
The latest offering is backed by residential mortgage-backed securities held in trust by the five corporate failures: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. The bonds were created from the cash flow, that is the principal and interest payments, on some $50 billion in toxic mortgage-backed securities held by the five corporate failures.
Price guidance on the latest offering is in the range of 40 basis points over one month London interbank offered rate area.
The bonds are expected to price Thursday.