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Value Proposition

Corporate One’s overnight, on- and off-balance-sheet deposit options allow credit unions with excess funds to invest in flexible overnight accounts, which provide diversification and the opportunity for greater returns. Overnight deposits can easily be managed via Corporate One’s member account management system.

Off Balance Sheet:   On Balance Sheet:

Preparing for EBA changes

Excess Balance Account (EBA) sweeps were established by the Federal Reserve in 2009 as a measure to enable financial institutions to maintain their correspondent banking relationships. While it is expected that EBAs will continue in their present iteration for the near term, it is widely believed that the Federal Reserve will begin, at some point, to drop their rate paid on excess reserves. In preparation for this, Corporate One has partnered with Federated Investors to provide credit unions a money market fund for their excess funds.

Federated Government Obligations Fund (Premier Shares) GOFXX

The Federated Government Obligations Fund allows credit unions with excess funds to invest in a money market fund that seeks to maintain a stable net asset value (NAV) of $1.00 per share. The fund’s investment objective is to provide current income consistent with stability of principal. The fund limits its investments to those that would enable it to qualify as a permissible investment for federally chartered credit unions as set forth in applicable federal banking regulations.

Features

  • The fund will operate as a “government money market fund” with at least 99.5% of its total assets invested in government securities
  • You may purchase, redeem or exchange shares of the fund on any day the New York Stock Exchange is open
  • Dividends are paid monthly
  • Holds AAAm, Aaa-mf and AAAmmf ratings from Standard & Poor’s, Moody’s and Fitch
  • Cut-off time is 5:00 p.m. ET for purchases and redemptions

Restrictions

  • The minimum initial investment is generally $1 million with no minimum subsequent investment amount

How does it work?

Credit unions do not have to maintain an account or meet any capital requirements at Corporate One to take advantage of this offering. To access the Federated Government Obligations Fund, simply contact one of our senior investment representatives at 800/366-2677, and we will work with you to get your account set up directly with Federated Investors.

Disclaimers

All securities are offered through Multi-Bank Securities, Inc. (MBS). The home office of MBS is located at 1000 Town Center, Suite 2300, Southfield, Michigan 48075. 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. All opinions, prices and yields are subject to change without notice. Any reports listed are for informational purposes only. Under no circumstances should it be used or considered as an offer to sell or a solicitation to buy securities mentioned in it. No representation is made that reports are accurate or complete or that any returns indicated will be achieved. Any reports listed are prepared for general circulation and are circulated for general information only. Reports do not consider the specific investment objectives, financial situation and particular needs of any specific person or institution who may receive this report. Multi-Bank Securities, Inc. is registered with the MSRB.