Chief Financial Officer's (CFO) Report to the Board
II. Investments Results - Fourth Quarter 2016
DIF Investment Portfolio
- On December 31, 2016, the total liquidity (also total market value) of the DIF investment portfolio stood at $75.3 billion, up $11.6 billion from its December 31, 2015, balance of $63.7 billion. During the year, interest revenue, receivership dividends, and deposit insurance assessment collections exceeded resolution-related outlays and operating expenses.
- On December 31, 2016, the DIF investment portfolio’s yield was 1.12 percent, up 18 basis points from its December 31, 2015, yield of 0.94 percent. The new Treasury securities purchased during the year generally had higher yields than the maturing securities’ yields, some considerably higher.
- In accordance with the approved fourth quarter 2016 DIF portfolio investment strategy, staff purchased a total of 21 short- to intermediate-maturity conventional Treasury securities, all designated as available-for-sale. The 21 securities purchased during the fourth quarter had a total par value of $13.7 billion, a weighted average yield of 1.53 percent, and a weighted average maturity of 3.76 years.