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Approved Investment Strategy -
Third Quarter 2004
Bank Insurance Fund
Current Strategy as of 3rd Quarter 2004*
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-indexed securities (TIIS) within the three- to ten-year maturity
sector, and/or purchasing callable Treasury securities with final maturities not to exceed 12 years,
subject to the following limitations:
- TIIS should not total more than $6.5 billion (adjusted par value) by quarter
end;
- Available-for-sale (AFS) securities should not total more than $10.5 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 $12 billion target floor liquidity
balance.
Strategy Changes for 4th Quarter 2004
Target floor liquidity balance to be reduced to $11 billion and AFS securities limit lowered to $9 billion.
Savings Association Insurance Fund
Current Strategy as of 3rd Quarter 2004*
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 ten-year maturity
sector, purchasing TIIS within the three- to ten-year maturity sector, and/or purchasing callable
Treasury securities with final maturities not to exceed 12 years, subject to the following limitations:
- TIIS should not total more than $2.4 billion (adjusted par value) by quarter
end;
- AFS securities should not total more than $3.3 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 $3.3 billion target floor liquidity balance.
Strategy Changes for 4th Quarter 2004
Target floor liquidity balance to be reduced to $3.0 billion and AFS securities limit lowered to $2.5 billion.
National Liquidation Fund
Current Strategy as of 3rd Quarter 2004
Maintain a $150 million target floor overnight investment balance.
Strategically invest the remaining funds in the zero- to 12-month maturity sector.
Strategy
Changes for 4th Quarter 2004
None
*The third quarter investment strategy was successfully implemented as
highlighted on the Investment Results and Prospective Strategies page.
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