Ordinance 3536-17 - Laserfiche WebLink

effectiveness of its investment strategy. These benchmarks shall be the current average U.S. Treasury Note rate that corresponds to the average life of the investments in the portfolio, the Washington State Local Government Investment Pool earnings rate, and other relevant measurement tools. 15.0 Investment Policy Adoption The City of Everett investment policy shall be adopted by Ordinance by the Everett City Council. The City Investment Committee shall review the policy on an annual basis, with any modifications made thereto approved by the Everett City Council prior to implementation. 16.0 Glossary ACCRUED INTEREST-The interest accumulated on a bond since issue date or the last coupon payment. The buyer of the bond pays the market price and accrued interest, which is payable to the seller. AGENCY -A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Government. Federally Sponsored Agencies (FSAs) are backed by each particular agency with a market perception that there is an implicit government guarantee. (Also see FEDERAL AGENCY SECURITIES and GOVERNMENT SECURITY) AMORTIZATION - In portfolio accounting, periodic charges made against interest income on premium bonds in anticipation of receipt of the call price at call or of par value at maturity. BANKERS ACCEPTANCES (BAs) - Bankers Acceptances generally are created based on a letter of credit issued in a foreign trade transaction. They are used to finance the shipment of commodities between countries as well as the shipment of some specific goods within the United States. BAs are short-term, non-interest bearing notes sold at a discount and redeemed by the accepting bank at maturity for full face value. These notes trade at a rate equal to or slightly higher than Certificates of Deposit (CDs), depending on market supply and demand. Bankers Acceptances are sold in amounts that vary from $100,000 to $5,000,000, or more, with maturities ranging from 30 - 270 days. They offer liquidity to the investor as it is possible to sell BAs prior to maturity at the current market price. 8 I City of Everett Investment Policy(2017)