Investors who purchase U.S. Central Federal Credit Union's medium term notes will earn more than credit unions that invest in U.S. Central's certificates of deposit.

As of yesterday, U.S. Central was paying 1.15% on a two-year certificate. Comparatively, one of U.S. Central's Oct. 14 notes was a $1.5 billion, two-year fixed rate bond that pays a coupon rate of 1.25%, according to Bloomberg market data.

The other two notes include a $2 billion, three-year fixed rate bond that pays 1.90% and a $500 million, two-year floating rate note that pays according to the 3-month Libor rate. The deals are available to investors in increments as small as $1,000, according to Bloomberg, and have settlement dates of Oct. 19.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.