The National Credit Union Administration (NCUA) plans to sell another $1.26 billion of its corporate bailout bonds this week, after last week's successful offering of $1.51 billion worth.

The bonds, which carry a federal guarantee, have proved popular with investors who have snapped up more than $20 billion worth since NCUA began selling them in October to finance the liquidation of five failed corporate credit unions.

The bonds are created from the cash flow of toxic MBS once owned by the five institutions, which served as wholesalers of sorts to the CU industry. The 'corporates,' which owned $50 billion in MBS, include: U.S. Central Federal Credit Union, WesCorp Federal Credit Union, Members United Corporate Federal Credit Union, Southwest Corporate Federal Credit Union, and Constitution Corporate Federal Credit Union. The actual bonds are being held in separate trusts by NCUA.

The latest offering is of floating-rate bonds that are backed by floating-rate MBS contained in the trust.

The bonds are being offered through lead underwriter Barclays Capital.

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