Securities investments double in 2010

Year-end numbers to reach more than $1 billion in securities sales

By: Bob Post, Chief Investment Officer

Corporate One’s Investments department has had a banner year. Having trusted investment solutions is vital for our member credit unions, and our members look to us to provide them diversified investment solutions to manage their cash effectively. A critical component in our success this year was forging a strategic alliance in March with Multi-Bank Securities, Inc. (MBS) to act as our new broker/dealer. Another factor in our success was the consistently strong SimpliCD program.

Thanks to our alliance with MBS, our members have had access to securities through a branch of MBS housed within Corporate One’s office and we began to offer members access to insured DTC-eligible CDs (negotiable certificates of deposit) for the first time. With this, credit unions could purchase insured CDs from depository institutions not currently available through the SimpliCD program. Though not a replacement for the SimpliCD program, CDs available through our strategic alliance with MBS increased the number of available issuers and presented a broader range of rates for credit union CD investment portfolios.

Through November 2010, total securities sales to credit unions were approximately $973 million, nearly double what they were in 2009. And, we fully expect to reach more than $1 billion in securities sales by year-end. Further, we’ve added 65 new securities relationships from around the country, and have generated nearly $1.1 million in gross revenue. Additionally, our SimpliCD outstandings through November 2010 remained strong at $373 million thanks, in part, to 22 new SimpliCD relationships in 2010. As a result, we’ve generated $1.1 million in revenue from SimpliCD sales.

In total, Corporate One has just under $4.5 billion in assets under management through November 2010. We are optimistic as we look to 2011, and will continue to focus on both our on- and off-balance sheet solutions. We are forecasting securities sales to exceed $1 billion for 2011 and for our SimpliCD program to remain strong.

Dislcaimers

All securities are offered through Multi-Bank Securities, Inc. (MBS). The home office of MBS is located at 24280 Woodward Ave, Pleasant Ridge, MI 48069. MBS is registered with the Securities and Exchange Commission (SEC) as a broker-dealer under the Securities Exchange Act of 1934. Member of FINRA and SIPC. All investments carry risk; please speak with your representative to gain a full understanding of said risks. Securities offered by MBS are not insured by the FDIC or NCUSIF and may lose value.