NCUA Sells More Corporate Bonds
WALL STREET – NCUA sold another $1.5 billion of its NCUA Guaranteed Notes yesterday, making a total of $19 billion of corporate bonds sold so far.
The floating-rate bonds were priced at 45 basis points over the one-month London interbank offered rate.
The offering was underwritten by Barclays Capital.
The bonds, which are comprised of cash flows, or interest and principal payments from toxic mortgage securities held by the five failed corporate credit unions, are federally guaranteed, so they are permissible investments for credit unions.