According to the NCUA's newly released corporate securities summary, Western Corporate FCU's AAA-rated securities at the time of purchase didn't accurately reflect investment quality.
NCUA didn't provide exact numbers breaking down investment losses at either corporate, but said more than one-third of WesCorp's securities are mezzanine securities backed by Alt-A and Option ARM loans.
Based on WesCorp's $23 billion portfolio, that represents more than $7.5 billion of subordinate securities, which absorb losses before senior securities within the same bond structure.
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