National Credit Union Administration (NCUA) plans to hit the Street again this week with another offering of NCUA Guaranteed Notes, this time of $1.165 billion backed by RMBS held by the five failed corporate credit unions.
The offering will be the 11th of the bonds used by NCUA to finance the corporate system resolution and will make a total of $25.1 billion of bonds sold since October 2010.
The proceeds of the offerings are being used to pay credit union depositors in the five failed corporates: U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU.
The notes are federally guaranteed and are backed by the cash flows on toxic mortgage-backed securities owned by the five corporate failures.
Barclays Capital is the lead underwriter of the offering.