NCUA Completes Corporate Bailout Bond Offerings
WALL STREET – NCUA hit the Street today with its 13th and final offering of NCUA Guaranteed Notes, used to finance the corporate credit union bailout.
The latest offering is comprised of $2.21 billion of a mix of bonds supported by the remaining collateral held in portfolio by the five corporate failures, U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate, and makes a total of $29 billion of the bonds sold to the public.
The bonds are securitized by the cash flows on toxic mortgage-backed securities once owned by the five corporate failures.
So far 280 institutions, including 25 credit unions, have purchased the bonds, which are guaranteed by NCUA.
The bonds are being offered through lead underwriter Barclays Capital.