NCUA Completes First Securitization Transaction of 2011
The NCUA yielded $1.5 billion from its first guaranteed note transaction of the year, the agency announced on Thursday.
The coupon on the Senior Notes will be 45 basis points over LIBOR.
The notes are funded by cash flows from corporate credit unions' legacy assets.
It is the NCUA's sixth offering of guaranteed notes and the agency said it has securitized 65% of the legacy assets originally targeted for securitization so it can fund deposits assumed by the bridge corporate credit unions.
"This latest successful offering demonstrates the value of the NCUA securitization program," NCUA Chairman Debbie Matz said in a statement.
The notes are backed by an unconditional NCUA guaranty for timely payment of principal and interest.