SWFCU Sees $1B In Special Shares
Southwest Corporate is reporting that its member credit unions poured more than $1 billion into special share certificates that were created during 2003 as a means of earning high returns in what was generally a low-rate environment.
SWCFCU said it created 78 special certificates during 2003, a substantial increase over the $551 million invested in the 45 special certificates created during 2002, according to Mark Walker, director of portfolio management for Southwest Corporate.
"Liquidity was a big driver of the higher volumes in 2003," Walker said. Walker added that during the year Southwest Corporate also responded to more numerous reverse inquiries during 2003. "In other words, credit unions came to us with large blocks of investible funds and asked us for help in creating higher-yielding opportunities."