ALEXANDRIA, Va. (6/17/11)--The National Credit Union Administration (NCUA) sale of NCUA Guaranteed Notes (NGNs), which was completed this week, netted a total of $50.5 billion to fund the resolution of troubled corporate credit unions. The first of the agency’s 13 NGN offerings was closed in October of 2010 and brought in around $3.8 billion in income. The agency announced yesterday that the last of the offerings was released on June 6 and brought in $2.21 billion in proceeds. The NGNs were comprised of $50 billion of legacy assets held by the NCUA. Those legacy assets are primarily of private label, residential mortgage-backed securities that were significantly devalued during the turmoil in the overall mortgage market. A total of $35 billion of those assets were reissued as NGNs and sold on the open market. NCUA Chairman Debbie Matz said that the securitization program “was hugely successful in helping to manage the problem assets of failed corporate credit unions. It was a cost-effective method for funding the legacy assets owned by the corporate credit unions, ensuring the system as a whole endured.” The NCUA amended its definition of low-risk assets to allow credit unions to invest in NGNs, and these investments received a zero risk weight due to their federal government backing. For the full NCUA release, use the resource link.