A New Way to Invest: How the ALM First Loan Fund Works

www.marktreichel.comhttps://www.linkedin.com/in/mark-treichel/In this episode of With Flying Colors, Mark Treichel sits down with Travis Goodman, CFA, Principal at ALM First Financial Advisors, and Mark Sun, Portfolio Manager at ALM First, to discuss the recent launch of the ALM First Loan Fund — the first non-registered investment fund approved by the National Credit Union Administration Board for federal credit unions, and the first trade just executed under it.The conversation covers:•        How the loan fund structure differs from a traditional loan participation, and why standardization matters at scale.•        The institutional discipline built into the structure: third-party loss estimates, third-party agreed-upon procedures, and third-party cash agent functions.•        Eligibility and guardrails: the 30-credit-union lifetime cap, the complex-credit-union requirement, the 50% and 15% net worth limits, and how state-chartered credit unions with federal parity can participate.•        The pilot timeline: seven years from approval, or five years from the first trade — whichever comes first — and what it means for the path to permanence.•        The role of credit union deposits as a unique, counter-cyclical source of funding in the institutional capital markets.•        Asset eligibility, including the under-10-year maturity rule and the focus on consumer loan products.•        How smaller credit unions might eventually benefit from the structure even if they are not eligible for the current pilot.For credit unions interested in learning more about the ALM First Loan Fund, contact: [email protected]