Subordinated Debt
Building capital through retained earnings is stable and reliable, but it slows down your growth strategy. Do you invest in a new branch or build a capital cushion? Launch new mobile banking features in your app or re-position and grow to protect against the next economic downturn?
Subordinated debt strategies, crafted with the experts at Catalyst, can help overcome limitations imposed by your organic capital levels without shortchanging your business strategies.
Subordinated debt isn’t just for growing your credit union, it can be an attractive addition to your investment strategy as well. Investing in subordinated debt supports credit unions seeking to add a unique and attractive asset class to their portfolio.
Whether you are looking to sell or invest in subordinated debt, you need a partner who understands the market and can give you the guidance needed to succeed. Did you know…
- Subordinated debt issuance requires advance regulatory approval.
- There are limits on who can issue subordinated debt eligible for net worth treatment.
- There are investment limitations that investors must be aware of.
- Subordinated debt often comes in a fixed to floating rate structure with call protection.
Catalyst is a veteran in the sub debt market and has the experience and know-how to help you navigate the maze of requirements and options needed to make subordinated debt a reality for you.
Contact Catalyst to get started.
Important Disclosures:
"Catalyst" is a brand name for the financial services business conducted by Catalyst Corporate Federal Credit Union ("Catalyst"), both directly and through its subsidiaries, including CUSOURCE, LLC, d/b/a Catalyst Strategic Solutions ("CSS"). Balance sheet management services and asset liability management services are offered through CSS, a SEC registered investment adviser. CSS is a separate entity from Catalyst and all investment decisions are made independently by CSS employees. Neither Catalyst nor CSS provide its clients with legal, tax or accounting advice.