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Approved
Investment Strategy -
Third Quarter 2007
Deposit Insurance
Fund
Current
Strategy as of 3rd Quarter 2007
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
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 $10.0 billion (adjusted par value) by
quarter end;
- Available-for-sale (AFS) securities should not total more than $9.5 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 billion target floor primary reserve balance.
Strategy
Changes for 4th Quarter 2007
Primary reserve balance is being increased, with a goal of reaching a $15
billion target floor balance over the near term.
AFS securities target limit is eliminated; all securities purchased during
the quarter will be designated AFS.
TIPS target limit is eliminated.
National
Liquidation Fund
Current
Strategy as of 3rd Quarter 2007
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 4th Quarter 2007
Maintain target overnight investment balance between $20 million and $25
million.
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