NCUA Resumes Sale Of Corporate Bailout Bonds
Barclays Capital is the lead underwriter of the offering.WALL STREET – NCUA is expected to hit the Street Thursday with an offering of $1.5 billion of NCUA Guaranteed Notes being used to finance the corporate credit union bailout, the first offering in three weeks.
This week’s offering, the tenth since October, makes a total of more than $25 billion of the notes sold, the proceeds of which are being used to pay off credit union depositors in the five failed corporates: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. NCUA plans to offer another $3 billion of the notes as part of the program.
The notes are federally guaranteed and are backed by the cash flows on toxic mortgage-backed securities owned by the five corporate failures. The latest offering is backed by residential MBS.
Barclays Capital is the lead underwriter of the offering.