DALLAS - Southwest Corporate FCU said during the first quarter of 2000, credit unions invested millions of dollars in its high-yield, low-risk special certificates. In the first quarter alone Southwest Corporate has offered nine specially-structured certificates. Over 160 CUs have invested about $110 in the certificates. A special certificate is a certificate that has some other bell and whistle other than a normal bullet certificate, such as a callable issue, a floating rate, or some other feature. In 1999 Southwest Corporate created 21 special certificates, attracting $318 million from 215 credit unions. "Some credit unions bring $100,000; others bring a million dollars to the package," said Mark Schieffer, investment manager at Southwest Corporate FCU. "From a collective standpoint we need about $10 million to make the deal work, but from an individual credit union, practicality is the only floor level." Schieffer said all of the special certificates in 2000 have exceeded 7% interest. "That seems to be the magic number that catches people's attention at this point," he said.
Southwest Corporate having sucess with special certificates
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