AgdaPkt 2021.02.22 Joint SA PFA - Laserfiche WebLink

Browse Search

6.C. - Page 81 of 196 CITY OF REDWOOD CITY NOTES TO THE BASIC FINANCIAL STATEMENTS For the Fiscal Year Ended June 30, 2020 NOTE 2 — CASH AND INVESTMENTS (CONTINUED) B. Investments, Continued Credit Risk — Defined as the risk of loss of value of an investment due to a downgrade of its rating or the failure or impairment of its issuer. Credit Risk shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that failure of any one issue does not unduly harm the City's capital base and cash flow. In order to limit loss exposure due to Credit Risk, the investment policy limits purchases of investments to those rated in a rating category "A" or its equivalent or better by a NRSRO. Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized: 49 168 Maximum Maximum Maximum Percentage Investment in Authorized Investment Type Maturity of Portfolio One Issuer United States Treasury Obligations 5 years No limit No limit Federal Agency or Government Sponsored Enterprises (GSEs) N/A No limit No limit Local Agency Investment Fund N/A No limit $75 Million San Mateo County Pool N/A No limit $75 Million State and Local Agency Bonds N/A 20% 5% Money Market and Mutual Funds N/A 20% 5% Local Government Investment Pools N/A 20% No limit U.S. Medium -Term Notes 5 years 30% 5% Non-negotiable Certificates of Deposit 3 years 10% 2% Negotiable Certificates of Deposit N/A 30% 5% Prime Commercial Paper 270 days 25% 5% Bankers' Acceptances 180 days 10% 2% Repurchase Agreements 90 days 10% 2% Asset-backed Securities 5 years 20% 5% Supranational Securities 5 years 30% 5% 49 168