NCUA Raises $13.1 Billion From First Three Offerings of Guaranteed Notes
The NCUA said today it has completed three offerings of its Guaranteed Notes and raised $13.1 billion.
The agency said it completed two transactions in November, which followed the transaction completed in October. The first November transaction included three classes of notes valued at $3.6 billion, backed by commercial mortgage backed securities. The second transaction featured two series of notes valued at $5.4 billion and are backed by residential mortgage-backed securities.
The notes are funded by cash flows from corporate credit unions' legacy assets.
The notes are backed by an unconditional NCUA guaranty for timely payment of principal and interest. Credit unions can record their investment in the notes with a 0% risk weight