Investment
Strategies - Fourth Quarter 2009
Deposit
Insurance Fund
Strategy
as of 4th Quarter 2009
Invest all
proceeds from deposit insurance assessments, Temporary Liquidity
Guarantee Program surcharges, maturing securities, coupon and
other interest payments, and receivership dividends in overnight
investments and/or in short-term Treasury bills in anticipation
of using such funds for resolution activities.
Strategy
Changes for 1st Quarter 2010
Purchase
up to $25 billion (par value) of available-for-sale (AFS) securities
with maturity dates between April 1, 2010, and December 31,
2010, subject to the following additional restrictions: no
more than $20 billion (par value) of such securities shall
have maturity dates beyond June 30, 2010; and no more than
$10 billion (par value) of such securities shall have maturity
dates beyond September 30, 2010.
Debt
Guarantee Program
Other Systemic Risk Reserves
Strategy
as of 4th Quarter 2009
For the Debt Guarantee Program portfolio, in anticipation of potentially
using these funds on an as needed basis to fund DIF resolutions,
all funds will be invested in overnight investments and/or short-term
Treasury
bills. For the Other Systemic Risk Reserves portfolio, strategically
invest all available funds in overnight investments and/or in conventional
or callable Treasury securities with effective maturity dates not
to exceed December 31, 2012.
Strategy
as of 1st Quarter 2010
For the Debt Guarantee Program portfolio, purchase up to $3 billion
(par value) of AFS securities with maturity dates between April 1,
2010, and December 31, 2010. For the Other Systemic Risk Reserves
portfolio, there is no first quarter 2010 strategy because all of
the portfolio's funds were transferred to the DIF portfolio on January
7, 2010 (effective as of December 31, 2009).
National
Liquidation Fund
Strategy
as of 4th Quarter 2009
Maintain an overnight deposit balance within a target range of $15 million
to $25 million.
Strategically
invest the remaining funds in the zero- to 12-month maturity
sector.
Strategy Changes for 1st Quarter 2010
Maintain an overnight deposit target floor balance within a range
of $15 million to $25 million.
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