The National Credit Union Association (NCUA) and the Federal Deposit Insurance Corp. (FDIC) each priced sizable CMOs in mid-September that are unlikely to be the last because of their incremental yield and issuer financing benefits, and because more banks are destined to fail.

In fact, the offerings may just be the right paper at the right time, at least for some institutional investors, and should ultimately save taxpayers lots of dollars.

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