LAS VEGAS — Western Corporate's open ALCO meeting drew mixed reactions from attendees this morning, with some saying they gained confidence in WesCorp's investments, while others reported lingering doubts.
As of Sept. 19, a total of 36 securities have been downgraded, said Executive Vice President and Chief Investment Officer Bob Burrell, which represents 5% of WesCorp's securities. Of those 36, 22 still remain at investment grade of BBB or higher. That leaves 14 securities, representing $610 million, that have fallen below BBB. However, all are still performing on target, Burrell said.
One attendee questioned WesCorp's decision to change status of its securities from "available for sale" to "held to maturity," saying it was the first time the NCUA had allowed such action.
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Chief Financial Officer Jim Hayes responded, saying in hindsight, he regrets the decision because it's created so much controversy. To the contrary, the move was designed to send a message of WesCorp's strength, he said.
Hayes also maintained that WesCorp had always intended to hold the securities to maturity, but once a security is taken off the market, it can't return. The availability status was a strategy to keep the corporate's options open.
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