Southwest Corporate To Offer DerivativesProgram
ALEXANDRIA, Va. - (11/30/05) -- The NCUA Board voted Tuesday toallow Southwest Corporate FCU to engage in a pilot programassisting natural person credit unions to develop a derivativesprogram. The program, which will be offered through theDallas-based corporate's Southwest Corporate Investment Servicesunit, will be offered to credit unions as a way of hedging againstinterest rate risk. Several other corporates have been approved forsimilar programs. Southwest Corporate said Tuesday after the NCUABoard approved its application in closed meeting that it hassuccessfully structured billions of dollars in derivatives to hedgeits own portfolio since 1992 and wants to share its expertise withits natural person credit union members.