Legacy Asset Profile

The legacy assets are distressed investment securities held by the asset management estates (AMEs) of failed corporate credit unions.

Legacy assets primarily consist of the following:

  • Private label, residential mortgage-backed securities (Non-agency RMBS);
  • Agency mortgage-backed securities (Agency MBS);
  • Commercial mortgage-backed securities (CMBS);
  • Student loan asset-backed securities;
  • Other asset-backed securities (ABS); and
  • Corporate bonds.

The following graphics and tables explain key characteristics of the legacy assets that were securitized through the NGN program.

Distribution by Legacy Asset Type and Balance Outstanding (in Billions of Dollars)

This stacked bar graph shows the dollar amount of balance outstanding in billions of dollars for each legacy asset type from 2010 through 2019 Q2.
Distribution by Legacy Asset Type and Balance Outstanding (in Billions of Dollars)
Legacy Asset Type 2010 Q4 $B 2011 Q4 $B 2011 Q4 % Change 2012 Q4 $B 2012 Q4 % Change 2013 Q4 $B 2013 Q4 % Change 2014 Q4 $B 2014 Q4 % Change 2015 Q4 $B 2015 Q4 % Change 2016 Q4 $B 2016 Q4 % Change 2017 Q4 $B 2017 Q4 % Change 2018 Q4 $B 2018 Q4 % Change 2019 Q2 $B 2019 Q2 % Change
Agency MBS 0.75 0.65 -14% 0.57 -13% 0.49 -13% 0.44 -11% 0.37 -14% 0.31 -18% 0.25 -18% 0.21 -15% 0.20 -6%
Student Loan 1.19 0.96 -19% 0.78 -19% 0.60 -23% 0.48 -20% 0.39 -19% 0.30 -22% 0.25 -18% 0.23 -7% 0.22 -3%
Other* 1.33 1.25 -6% 0.89 -28% 0.64 -29% 0.39 -40% 0.34 -12% 0.29 -15% 0.28 -2% 0.35 22% 0.35 0%
CMBS 4.39 4.31 -2% 4.15 -4% 3.98 -4% 3.74 -6% 2.20 -41% 0.39 -82% 0.11 -72% 0.09 -17% 0.08 -10%
Non-agency RMBS 32.31 27.13 -16% 21.81 -20% 18.21 -17% 16.00 -12% 13.97 -13% 12.02 -14% 8.44 -30% 6.74 -20% 6.29 -7%
Total 39.97 34.30 -14% 28.20 -18% 23.92 -15% 21.05 -12% 17.28 -18% 13.30 -23% 9.33 -30% 7.62 -18% 7.14 -6%

* "Other" is comprised of corporate debt and other asset-backed securities.

The reduction of the balance outstanding is a result of principal repayments of $25.6 billion, realized losses of $4.7 billion, and post-securitized asset sales of $2.5 billion.

Legacy Assets Contributed by Asset Management Estate at Liquidation

US Central 43%, Western Corp 39%, Members United 9%, Southwest 8%, Constitution 1%

Credit Rating Distribution of Legacy Assets at Issuance Versus Liquidation of Corporate Credit Unions

Credit rating distribution December 2010

The rating is based on the lowest published rating by S&P, Moody’s, or Fitch.

* Ratings are as of December 31, 2010, which approximates the liquidation date of the failed corporate credit unions.
** Below Investment Grade means rated below BBB-

Rating Distribution of Legacy Assets

The following information will be updated semi-annually. The next update will occur by April 2020.

This pie chart shows the percentage of the NGN portfolio that falls under each rating category for Q2 2019.
  • Ratings Distribution History
  • The rating is based on the lowest published rating by S&P, Moody’s or Fitch.
  • “Below Investment Grade” means rated below BBB-.