Ordinance 3536-17 - Laserfiche WebLink

FEDERAL RESERVE SYSTEM - The central bank of the United States that has regulated credit in the economy since its inception in 1913. It includes the Federal Reserve Bank, 14 district banks and the member banks of the Federal Reserve, and is governed by the Federal Board. FINANCIAL INSTITUTIONS - Establishments that include the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities. GOVERNMENT SECURITY- Any debt obligation issued by the U.S. government, its agencies or instrumentalities. Certain securities, such as Treasury bonds and Ginnie Maes, are backed by the government as to both principal and interest payments. Other securities, such as those issued by the Federal Home Loan Mortgage Corporation (FHLMC), or Freddie Mac, are backed by the issuing agency. LIQUIDITY - Refers to the ease and speed with which an asset can be converted into cash without a substantial loss in value. LOCAL GOVERNMENT INVESTMENT POOL (LGIP) -The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARK-TO-MARKET-An adjustment in the valuation of a securities portfolio to reflect the current market values of the respective securities in the portfolio. This process is also used to ensure that margin accounts comply with maintenance. MARKETABILITY -Ability to sell large blocks of money market instruments quickly and at competitive prices. MARKET RISK-The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value. The risk that the market value of an investment, collateral protecting a deposit, or securities underlying a repurchase agreement will decline. MARKET VALUE - The price at which a security is trading and could presumably be sold. 12 I City of Everett Investment Policy(2017)