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NCUA’s Subordinated Debt: The Fundamentals and Strategy

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September 17, 2020 @ 1:00 pm - 2:00 pm CDT

Alec Hollis, CFA, Managing Director, ALM Strategy Group, ALM First
Dennis Holthaus, Managing Director, Skyway Capital Markets
Richard Garabedian, Counsel, Hunton Andrews Kurth

Having access to capital is incredibly important for any financial depository institution.  NCUA has recognized this and as such proposed an amendment to authorize the issuance of subordinated debt by natural person credit unions for purposes of regulatory capital treatment. Currently only low-income credit unions may issue subordinated debt that can count toward their net worth requirement. The proposal allows complex credit unions and new credit unions this option, which will count toward their risk-based capital requirement.

This webinar will cover NCUA’s proposal to authorize the issuance of subordinated debt, the process and its usefulness for managing liabilities and capital. It will address the: proposed rule, regulatory approval process, terms of the debt instrument, offering process and eligible investor, reasons to issue subordinated debt and current interest rate environment.

Key Takeaways

  • Understand the approval and offering processes
  • Discuss identifying potential investors
  • Review the supplemental capital’s role in longer-term strategic planning
  • Learn the pros and cons and financial impacts of subordinated debt


September 17, 2020
1:00 pm - 2:00 pm
Event Category: