Brokerage Vendor Puts First Carolina on Pace for Record Year
The $1.7 billion First Carolina Corporate Credit Union said Tuesday it is expecting a record-breaking year for its brokerage business, trading almost $200 million in securities so far this year through Oct. 31.
The Greensboro, N.C.-based corporate credits its relatively new partnership with Protective Securities, which launched in early 2012, and provided First Carolina with access to a much wider array of products, including municipal and SBA bonds.
Fred Eisel, First Carolina’s senior vice president and chief investment officer and a registered Protective Securities representative, said the Birmingham, Ala.-based brokerage firm’s online Advisor Portal makes areas such as trading, compliance training, settlements and commission statements very efficient.
“Members like the wide variety of bonds, and due diligence is easier for them,” he said.
Scott Wood, investment analyst at First Carolina and also a registered Protective Services representative, said the partnership has provided access to a much greater inventory, which allows the corporate to find the best-priced bonds for members.
Eisel says credit unions wishing to participate in First Carolina’s brokerage services do not have to pay in Permanent Contributed Capital.
“We have a number of users outside our core field of membership,” he said. “Many credit unions that no longer have a corporate relationship are looking for a high-quality brokerage with a focus on and understanding of our industry.
“Partnering with Protective Services has blended well with our growing ALM Services division as well, since our ALM users are able to model a variety of investment strategies and then execute those strategies right here, at First Carolina.”