Ch_16_INVESTMENT_POLICY - Muni <= 40% Corporate...

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INVESTMENT POLICY Can be a part of the Asset/Liability Policy Authorities – Investment committee or A/L Committee (ALCO) Members Appointed investment officer Objectives – Support liquidity Support Income Manage Interest Rate Risk Approved Investments: BBB- or better (quality); types of investments; allocations U S Treasuries < = 100% U S Government Agencies <= 40%
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Unformatted text preview: Muni &lt;= 40% Corporate &lt;= 30% CMO/MBS (gov guaranteed) &lt;=40% Foreign Bonds &lt;= 20% Maturities/Durations &lt;= 10 yrs Limits per issuer &lt;= 20% of portfolio Officer(s) purchase limits Investment officer $5 million + CEO $7.5 million board approval &gt; $7.5 million Must sell if rating is lower than BBB-Pre-purchase analysis requirement...
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This note was uploaded on 09/07/2011 for the course FIN 653 taught by Professor Cobus during the Spring '08 term at S.F. State.

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Ch_16_INVESTMENT_POLICY - Muni &amp;amp;lt;= 40% Corporate...

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