Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA backs plan to allow FCU TIPS investments
WASHINGTON (12/3/12)--Federal credit unions should be permitted to invest in Treasury Inflation Protected Securities, the Credit Union National Association (CUNA) said in a comment letter to the National Credit Union Administration (NCUA).

Allowing such investments, as proposed by the NCUA, will allow credit unions to protect against inflation and manage interest-rate risk, wrote CUNA Senior Vice President and Deputy General Counsel Mary Dunn. She also urged the agency to work with state regulators to find a way to let well-managed state credit unions invest in these securities.

Currently, investments in TIPS are allowed under a limited basis under a pilot program.

CUNA believes that "a credit union should undertake sufficient analysis before purchasing any TIPS and be able to manage its TIPS investments on an ongoing basis, current requirements regarding due diligence and risk management are sufficient, and no additional requirements in these areas should be imposed on credit unions in connection with TIPS authority,'' she wrote.

The TIPS market has been in existence for 15 years and TIPS are fully guaranteed by the U.S. government. The principal is adjusted based on changes in the Consumer Price Index, while the interest rate, which is paid semiannually on the adjusted principal, remains fixed.

Use the resource link to access CUNA comment letters.


RSS print
News Now LiveWire
.@TheNCUA :Low-income CUs can expand services to members, train staff,collaborate for efficiencies w/more than $1M in grants awarded 2day
7 hours ago
.@CUNA joins 11 other financial service orgs urging @SenateFloor to take up #CISA to strengthen cybersecurity information sharing
8 hours ago
.@RedwoodCU and its staff donated a combined $5,100 toward AIDS Walk San Francisco. The CU is a longtime sponsor of the event.
8 hours ago
See the latest from @CUNA's CompBlog on Customer Due Diligence. http://t.co/rzOzDUpNMT
8 hours ago
New #FinCEN proposal would strengthen, clarify due diligence obligations for financial institutions. http://t.co/2yxVUXCrYA
8 hours ago