The bonds are being offered through lead underwriter Barclays Capital.
WALL STREET – NCUA plans to sell another $1.26 billion of its corporate bailout bonds this week, after last week’s successful offering of $1.51 billion worth.
The bonds, with the federal guarantee, have provided popular with investors, who have snapped up more than $20 billion worth since NCUA began selling them to finance the liquidation of five failed corporate credit unions in October.
The bonds were created from the cash flow, that is the principal and interest payments, on some $50 billion of toxic mortgage-backed securities held by the five corporate failures, U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. The actual bonds are being held in separate trusts by NCUA.
The latest offering is of floating-rate bonds that are backed by floating-rate MBS contained in the trust.
The bonds are being offered through lead underwriter Barclays Capital.
