NAPERVILLE, Ill.–Alloya Corporate FCU said it joined with three credit unions to complete the credit union network’s first-ever multi-issuer prime auto loan asset-backed securitization (ABS).
Alloya said it joined with Minnesota-based Blaze Credit Union, Illinois-based Consumers Credit Union and Indiana-based Interra Credit Union on what the corporate called a “significant new source of liquidity for the entire credit union network.”

“Banks have never completed a multi-issuer ABS, and this powerful story is a shining example of how credit unions working together can build capabilities that only the largest financial institutions in the United States possess,” Alloya Corporate said.
According to Alloya, the securitization, backed by a diversified pool of auto loans originated by the three credit unions involved, was structured to “optimize investor appeal while maintaining strong credit quality.”
The deal was sold to broad investor interest with the tranches being three to five times oversubscribed, said Alloya, adding it provided strategic advisory, operational support and ongoing monitoring throughout the process, ensuring a seamless execution from issuance to servicing.
‘Power of Cooperation’
“This transaction exemplifies the power of cooperation within the credit union system,” Andrew Kohl, Alloya’s chief investment officer, said in a statement. “By pooling resources and leveraging Alloya’s capital markets expertise, our member credit unions were able to access the securitization market in a way that would be difficult to achieve independently. Our goal is to provide a platform for ongoing access to markets using this initial transaction as the ‘template’ for future deals.”

Credit Union Statements
All three CUs issued statements following the transaction.
- “This securitization highlights the power of the cooperative network and what can happen when credit unions work together,” said Amy Sink, CEO of Interra Credit Union. “Interra is honored to be a part of this first-ever transaction and looks forward to participating with other credit unions on future deals.”
- Added, Sean Rathjen, CEO of Consumers Credit Union, “The partnership with Alloya and two fellow credit unions is a great example of the collaboration and cooperation amongst credit unions. This is the first of many multi-entity auto loan securitizations which will provide another option for liquidity and credit risk mitigation. I applaud Alloya for spearheading this project and look forward to more innovation with them. Wall Street will have a detailed review on the performance of credit union underwriting and will reward us over time with better market pricing. Many thanks to the Alloya team for providing the support and guidance in this transformative transaction.”
- “Blaze is honored to partner with Alloya Corporate, Interra and Consumers to facilitate another liquidity avenue for credit unions nationwide. Our teams have collaborated extensively over the past nine months to deliver a triple win: a win for Blaze, our members and the credit union industry,” said Dan Stoltz, CEO and president of Blaze Credit Union
‘Not Easy to Accomplish’
“Alloya’s board of directors is filled with visionaries, and they challenged management to open the doors to this alternative source of liquidity for the credit union network,” Alloya CEO Todd Adams said in a statement. “It was not easy to accomplish this historic milestone, but these credit unions worked well together and cleared several hurdles to create a path for other credit unions to follow. Alloya’s mission is to support credit union success and simplify their back office lives – mission accomplished.”
According to Alloya, the deal reflects growing interest among credit unions in structured finance as a tool for managing risk and funding growth. Alloya said additional information can be found at www.alloyacorp.org/capital-markets-simplified.