The National Credit Union Administration will continue the liquidation of U.S. Central Federal Credit Union and WesCorp Federal Credit Union next week with the sale of $2.82 billion worth of ten-year guaranteed notes comprised of cash-flows from commercial mortgage-backed securities held by the two now-defunct corporate CUs.
The sale, to be underwritten by Barclay's Capital, follows last week's offering of $3.85 billion of notes derived strictly from residential MBS held by U.S. Central.
NCUA plans to sell as much as $35 billion of the notes in its liquidation of U.S. Central and WesCorp and three more recent corporate failures, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU.
The notes carry Triple-A ratings because they are federally guaranteed through NCUA, and are permissible investments for federally insured credit unions.
