Next Group Of Corporate Liquidation Bonds Comprised Of Commercial MBS

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WALL STREET – NCUA will continue the liquidation of U.S. Central FCU and WesCorp FCU next week with the sale of $2.82 billion worth of ten-year Guaranteed Noted comprised of cash-flows from commercial mortgage-backed securities held by the two corporate failures.

The sale, to be underwritten by Barclay’s Capital,  follows last week’s offering of $3.85 billion of notes derived strictly from residential MBS held by U.S. Central. NCUA plans sell as much as $35 billion of the notes in its liquidation of U.S. Central and WesCorp and three more recent corporate failures, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU.

The notes carry Triple A ratings because they are federally guaranteed through NCUA, so are permissible investments for federally insured credit unions.

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