PLANO, Texas — Credit unions are investing their burgeoning deposits for longer terms and in more special certificates, according to analysis by Southwest Corporate FCU.
The corporate reported credit union CFOs and treasurers much more willing this year to place funds in special investment vehicles that they have been at any time over the past two years, when rates slowly but steadily rose.
During the first six months of 2007, credit unions have invested more than $600-million in specially-structured share certificates at Southwest Corporate, nearly double the $321-million invested by credit unions during the same time period in 2006. The figure for the first half of 2005 was $228 million.
"Credit unions watching the Fed believe it is going to hold overnight rates right where they are for a while," Southwest's Director of Investment Services, Zane Wilson, said. "This has spurred credit unions to invest additional funds for longer terms."
