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Approved
Investment Strategy -
First Quarter 2006
Deposit Insurance
Fund
Current
Strategy as of 1st Quarter 2006
Maintain a $200 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 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 $8.9 billion (adjusted par value) by quarter
end;
- Available-for-sale (AFS) securities should not total more than $9.4 billion
(par value) by quarter end; and
- All newly purchased AFS securities should have maturities of six years
or less.
Moreover, staff will strive to maintain a $10.5 billion target floor primary
reserve balance.
Strategy
Changes for 2nd Quarter 2006
Overnight investment target floor balance reduced from $200 million to
$150 million.
TIPS limit raised from $8.9 billion to $9.0 billion.
AFS securities limit lowered from $9.4 billion to $9.2 billion.
Primary reserve target floor balance reduced from $10.5 billion to $10.0 billion.
National
Liquidation Fund
Current
Strategy as of 1st Quarter 2006
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 2006
None
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