Chief Financial Officer's (CFO) Report to the Board
II. Investments Results - First Quarter 2016
DIF Investment Portfolio
- On March 31, 2016, the total liquidity (also total market value) of the DIF investment portfolio stood at $67.8 billion, up $4.0 billion from its December 31, 2015, balance of $63.7 billion. During the quarter, interest revenue, receivership dividends, and deposit insurance assessment collections exceeded resolution-related outlays and operating expenses.
- On March 31, 2016, the DIF investment portfolio’s yield was 0.94 percent, little changed from its December 31, 2015, yield. Although the new Treasury securities purchased during the quarter generally had higher yields than the maturing securities’ yields, the portfolio had a larger balance of low yielding overnight investments at the end of the first quarter, thus temporarily bringing down the overall portfolio yield.
- In accordance with the approved first quarter 2016 DIF portfolio investment strategy, staff purchased a total of nine short- to intermediate-maturity conventional Treasury securities, all designated as available-for-sale. The nine securities had a total par value of $6.8 billion, a weighted average yield of 0.71% percent, and a weighted average maturity of 1.00 years.