The National Credit Union Administration is seeking bids on about $800 million of commercial mortgage-backed bonds collected from U.S. Central FCU and WesCorp FCU, the opening efforts on its bid to securitize as much as $50 billion in troubled mortgage securities held by failed corporate credit unions.
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The bonds, which are being offered through Barclays Capital, are guaranteed by NCUA.
NCUA is testing investor appetite for the bonds with the initial offering and hopes to remove as much as $50 billion in toxic assets from the books of the corporates, so-called legacy assets, through securitizations like this.
The story first broke in Credit Union Journal, a sister publication to National Mortgage News.
