Invest at Home: New Hampshire Bill Seeks to Rein in the state’s LGIP
Maybe it’s the current high level of interest rates that have disadvantaged banks; maybe it’s the growth of the New Hampshire local government investment pool, which more than doubled in size to $530 million in the year ending June 30, 2023. New Hampshire banks are pushing legislation that would rein in the New Hampshire Public […]
Recent Market Moves, LGIP Legislation in Nebraska and More. . .
This week’s Beyond the News has commentary on recent market moves, proposed local government investment pool legislation in Nebraska and a capital raise by Public Trust Advisors. Check out the updated Dashboard here. Recent Market Moves Have Had Almost No Effect on LGIP Yields The bond market has had a bumpy couple of months. Two […]
And the Winner Is?
A Recap of 2023 Investment Results The PFII Dashboard has been updated. See it here. The sharp rise in rates over the year just ended resulted in strong returns for LGIPs and money funds. We estimate that the full year returns for LGIPS were in the range of 5.10% to 5.30%. (The lack of consistent […]
Big Market Move Means Different Things for Different Folks
The big market news last week was a strong rally that pushed most interest rates down by 30-40 basis points. To see what it meant for public fund investors, check out the updated Dashboard. Here are highlights: ● The market rally, which pushed down interest rates of most tenors by about 30 basis points, […]
Public Funds Investment Portfolios: Steady with Little Growth Expected
Public funds investment assets have barely expanded this year, despite robust interest earnings that flow to investment portfolios. This is according to newly released Federal Reserve data. The Fed reports that investment assets totaled $3.7 trillion at the end of the third quarter, up $100 billion from December 31, 2022. The growth rate of 2.9% for the nine-month period is less than the pace of economic growth (GDP was up 4.5%) and about even with the rate of inflation. This followed growth of investment assets of 40% between 2018 and the end of 2021.
A New LGIP in Georgia; FSOC Action is Telltale of Important Changes in Financial Markets
A new LGIP Portfolio to open in Georgia; Financial Stability Oversight Council Action is a telltale of big changes in the financial markets.
Moody’s Makes it Three
Late last week Moody’s Investors Service announced a change in the outlook on US government ratings to negative from stable. This signals that the triple-A rating of United States debt could be lost in coming months.
FHL Banks at 100–How the Opportunities for Public Funds Investors May Change
The Federal Housing Finance Agency this week released its long-promised review of the FHL Banks which aims to sharpen the focus on supporting housing finance and community development and avoid becoming a lender of last resort for banks and other financial institutions.
Is It Time to Go Long?
With all the talk of higher interest rates, unexpected strength in the US economy and an unsettled political situation here and globally, is now the time to go long? For the past two years cash-like investments (especially stable value LGIPs) have been the winners as rising interest rates produced losses in bond portfolios, but at some point the tide will change. For public funds investors, where “long” means two- or three-year maturities now may be that time.
Are LGIPs a Safe Harbor from Bond Market Volatility?
With financial news headlines screaming Treasury market volatility and commentators warning that the sharp rise in interest rates could cause dangerous market dislocations, one might wonder about the stability of money funds and LGIPs.