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Approved
Investment Strategy -
First Quarter 2005
Bank Insurance Fund
Current
Strategy as of 1st Quarter 2005
Maintain a $150 million target floor overnight investment balance.
Strategically invest all available funds in excess of the target overnight
investment balance, which
may include purchasing conventional Treasury securities within the zero- to
ten-year maturity
sector, purchasing Treasury Inflation-Protected securities (TIPS) within
the two- to ten-year maturity
sector, and/or purchasing callable Treasury securities with final maturities
not to exceed twelve years,
subject to the following limitations:
- TIPS should not total more than $6.5 billion (adjusted par value) by
quarter end;
- Available-for-sale (AFS) securities should not total more than $8.0 billion
(par) by quarter end; and
- All newly purchased AFS securities should have maturities of six years or less.
Moreover, staff will strive to maintain a $10 billion target floor liquidity
balance.
Strategy
Changes for 2nd Quarter 2005
None
Savings Association Insurance Fund
Current
Strategy as of 1st Quarter 2005
Maintain a $50 million target floor overnight investment balance.
Strategically invest all available funds in excess of the target overnight investment
balance, which may include purchasing conventional Treasury securities within
the zero- to twelve-year maturity
sector, purchasing TIPS within the two- to ten-year maturity sector, and/or
purchasing callable Treasury securities with final maturities not to exceed
twelve years, subject to the following limitations:
- TIPS should not total more than $2.4 billion (adjusted par value) by
quarter end;
- AFS securities should not total more than $2.4 billion (par) by quarter
end; and
- All newly purchased AFS securities should have maturities of six years or less.
Moreover, staff will strive to maintain a $3.0 billion target floor liquidity
balance.
Strategy
Changes for 2nd Quarter 2005
AFS securities limit lowered to $2.3 billion and liquidity target floor lowered
to $2.7 billion.
National Liquidation Fund
Current
Strategy as of 1st Quarter 2005
Maintain a $30 million target floor overnight investment balance.
Strategically invest the remaining funds in the zero- to 12-month maturity sector.
Strategy
Changes for 1st Quarter 2005
None
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