Running a commercial paper conduit is nothing new for the U.S. Central Federal Credit Union. This perhaps explains why the company debuted on the asset-backed commercial paper market with a flexible credit arbitrage vehicle that, unlike many similar vehicles, can issue extendible notes.

Sandlot Funding LLC, the credit union's first ABCP conduit, will be able to invest in high-quality ABS and MBS. The credit union will act as sponsor and administrator for the transaction. It will be able to issue up to $10 billion of secured liquidity notes with maturity dates of 270 days from their initial date of issuance, and final maturity dates of 365 days, if the administrator chooses to extend the notes.

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