After pricing a sizeable securitzation backed by residential mortgages in mid-September, the National Credit Union Association (NCUA) is in the market again. This time the NCUA is out with a CMBS transaction worth $3.76 billion.

The five-tranche deal is called NCUA Guaranteed Notes Trust 2010-C1. According to a Fitch Ratings presale report, NCUA will be issuing securities in a single series, represented by the class A1, A2, and A-PT notes; class C notes; and class R certificates. The offering is backed a portfolio of 51 CMBS assets.

Like its earlier RMBS offerings, NCUA's note sale is led by Barclays Capital.

Fitch said that the senior notes shall be offered for sale to institutional investors, such as credit unions. The class C notes and the class R certificates will initially be retained by the NCUA board in as the liquidating agent for the U.S. Central Federal Credit Union and the Western Corporate Federal Credit Union (WesCorp). 

The proceeds from the transaction will be used to buy a CMBS static portfolio. These CMBS used to be owned by U.S. Central and WesCorp, which are credit unions that were taken into conservatorship by the NCUA board in March 2009.

NCUA's last securtization, backed by RMBS, was also managed by Barclays, which ran the FDIC's four earlier RMBS offerings as well. The $3.3 billion tranche of the NCUA's $3.8 billion offering priced at one-month Libor plus 45 basis points, and the rest at swaps plus 100 basis points.


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