<p>HALES CORNER, Wis. – Wisconsin Corporate Central CU has unveiled two new investment products, one of which is a first for the corporate network. The corporate's new certificate product, MasterLOC, features a letter of credit from U.S. Central. This means in the event that Wisconsin Corporate couldn't pay on the certificate, U.S. Central would. Kevin Chiappetta, vice president of investments for Wisconsin Corporate Central CU, said the corporate's state regulator permits this, but as far as he knew NCUA doesn't, thus prohibiting federal corporates from offering similar products. "Our state views deposits in our credit union as a liability. The interpretation of the Federal Credit Union Act is that of an equity. You can't put a preference on equity. We have a more favorable ruling from our state regulator," said Chiappetta. He said the corporate is hoping this product will solve the problem of member credit unions feeling they have too much exposure in Wisconsin Corporate, and for CUs outside of its state to view the product as a diversification tool. David Dickens, SVP of investments for U.S. Central, said although the deposits are with Wisconsin Corporate, the risk is assumed by U.S. Central, thus giving the investing credit union a risk exposure to U.S. Central. This diversification aspect is key these days with liquidity at very high levels. Credit unions have a lot of money to invest, whether it be very short-term corporate accounts or longer-term certificates, many are looking for diversification in terms of who they invest with. "There are a number of corporates that are interested in pursuing this," said Dickens. Chiappetta said credit unions are often asking the corporate how they can get exposure to the AAA rated U.S. Central, and this product is one way to do it. Dickens said as far as he knew, NCUA did not permit this, but he wasn't 100% sure and that U.S. Central is currently investigating the issue. At press time, NCUA did not have an answer as to if federal chartered corporates could offer a similar investment. Wisconsin Corporate also announced its new Plus Account. Similar to the corporate's 30-day variable rate account, the Plus Account allows members to access all of their funds up to four times per month, without having to provide any notice. The corporate's variable rate account requires credit unions to give 30-days notice to pull money out. The Plus Account will have a minimum balance of $500,000, with rates above overnight rates. Chiappetta said though this is another short-term account, the corporate has also been encouraging credit unions to invest some money further out on the yield curve to pick up a better return. He said many CUs are still hesitant as they are not sure when loan demand will pick up. [email protected]</p>