New Investment Option Offered CUs
WALL STREET – The Federal Home Loan Bank system, one of the few acceptable issuers of credit union investments, launched a new long-term offering last week, 30-year global bonds. The 5.50% bonds, due July 15, 2036, were priced at 98.656 to yield 5.593%, or 47 basis points over comparable U.S. Treasuries. The FHLBs sold $1.5 billion of the new bonds. Underwriters said 86% of the issue was sold domestically and the rest internationally.