Loan Participations
Loan participations are a powerful tool that enable credit unions to manage liquidity, earnings, assets and more.
Catalyst’s Loan Participation program harnesses that power by providing easy access to the market through the Loan Participation Exchange. The platform is backed by our industry-leading expertise and personalized consultative services.
- Diversify your balance sheet and loan assets.
- Boost earnings buying and selling loan participations.
- Manage liquidity position.
Catalyst developed the Loan Participation Exchange to give credit unions nationwide a centralized place to purchase or sell loan participations through a secure online platform. The LP Exchange provides a marketplace where sellers can publish loans and loan pools for sale while buyers can view available offerings, review credit profiles, pool stratifications, access loan due diligence information and complete purchases.
The Loan Participation Exchange has changed the way credit unions buy and sell loan participations, speeding the processing and removing barriers to entry, but a great tool requires the skill of an expert to produce the best results. That’s where Catalyst’s expertise and insight comes into play. We don’t just provide a tool and ask you to figure it out, we’re with you every step of the way. From crafting an attractive loan pool to finding the loan participations that best match your strategy and needs, Catalyst is here to make your loan participation journey a success.
Sellers of loan participations can generate liquidity and manage concentration risk and their balance sheet asset mix at the same time while creating a new source of earnings.
- Replenish liquidity to continue to meet member loan demand.
- Maintain volume through challenging liquidity environments.
- Manage balance sheet composition and concentration.
- Generate earnings through servicing fees.
- Bolster capital enhancement and net income from sale proceeds.
Buyers of loan participations benefit by turning excess funds into attractive new assets while gaining the ability to diversify their asset portfolios.
- Attractive asset class often with superior returns
- Enhance loan volume.
- Diversify loan portfolio and mitigate risk.
- Access members and geographical areas outside the core service area.
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.