{"id":716,"date":"2021-09-16T19:00:55","date_gmt":"2021-09-16T19:00:55","guid":{"rendered":"http:\/\/www.slameeting.com\/sm2021\/?page_id=716"},"modified":"2021-09-17T13:08:33","modified_gmt":"2021-09-17T13:08:33","slug":"frb-investment","status":"publish","type":"page","link":"https:\/\/www.slameeting.com\/sm2021\/frb-investment\/","title":{"rendered":"FRB Investment Suggestions"},"content":{"rendered":"\n
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FRB Investment Suggestions<\/h1>\n\n\n\n\n\n

Proposed Amendment – Mandatory<\/h2>\n\n\n\n\n\n\n\t\n\t
Factor<\/td>Current<\/td>Proposed<\/td>Notes<\/td>\n<\/tr>\n
Concentration limits<\/td>$250K per issuer\/issue<\/td>Target a 5% issue and 10% issuer maximum based on the market value of the portfolio*<\/td>Percent allocations to better reflect the size of the portfolio as well as enhancing liquidity<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n

Proposed Amendment – Optional<\/h2>\n\n\n\n\n\n\n\t\n\t\n\t\n\t
Factor<\/td>Current<\/td>Proposed<\/td>Notes<\/td>\n<\/tr>\n
Average portfolio maturity<\/td>Maximum 2.5 years<\/td>\u201cTarget\u201d of 2.5 years with a +\/- 20% average maturity band<\/td>Allows slight over\/ under vs. target to allow for market actions and opportunities<\/td>\n<\/tr>\n
Credit ratings<\/td>Aa\/AA minimum per security<\/td>Expand to include all ratings of investment grade-rated securities (Baa3\/BBB- minimum)<\/td>~78% of the investment grade universe is rated in the \u201cA\u201d or \u201cBBB\u201d category thereby increasing available options as well as yield<\/td>\n<\/tr>\n
Allowable sectors<\/td>U.S. Govt
\nU.S. Agencies\/GSEs (including MBS)
\nCorporates
\nCDs
\nMunicipals (taxable)
\nMoney market funds<\/td>		Maintain all plus add Asset-backed Securities (ABS)<\/td>Very similar to the structure and credit quality of Agency MBS, however, are secured by loan receivables from autos, credit cards, RVs, etc.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n\n\n\n

Investment Policy<\/h2>\n\n\n