Recent Reads

New Research Report Details the Role of State-Sponsored Local Government Investment Pools as the Foundation of a $900 Billion Industry

By Marty Margolis on July 24, 2024

A new research report by the Public Funds Investment Institute details the role of state treasurer-sponsored local government investment pools as a foundation of the $900 billion industry that provides money market-like investments to state and local governments. State treasurers in 32 states offer these funds and their assets total nearly $700 billion. Local-sponsored LGIPs with an estimated $200 billion […]

Cash and Short-Term Portfolios Had Strong Returns in the First Half of the Year

By Marty Margolis on July 9, 2024

The PFII Investment Dashboard has been updated through quarter-end and reflects a couple of interesting market dynamics. The 1-3-year model portfolio yield to maturity of 4.95% at the end of the quarter reflects this. The model portfolio also benefitted from holding corporate obligations. Thirty percent of the portfolio is invested in investment grade credit which […]

Uncertainty Ahead: Growth of Public Sector Investment Portfolios Slows, Liquidity Expands

By Marty Margolis on July 2, 2024

• There are signs that the robust growth in state and local government investment portfolios in recent years is ending even as high interest rates generate strong internal portfolio growth. The recently-released Federal Reserve’s Financial Accounts report showed state and local government assets grew only 0.6% in the quarter ended March 31, 2024 and 4.3% […]

When the Tail Wags the Dog: A Word of Caution Related to Investing in CP and CDs

By Marty Margolis on June 18, 2024

Commercial paper and negotiable certificates of deposit make up a minor portion of the universe of short-term securities held by public agencies, money market funds and other institutional investors. But because the market for CP/CDs has suffered from disruption during periods of market stress, it has the continued focus of prudential regulators. This is highlighted […]

What’s Good Is Good

By Marty Margolis on June 6, 2024

Five months into the year, preferred investment strategies for public funds investors are performing quite well, thank you. Our updated Dashboard, with all of these details and a summary of the Security and Exchange Commission's Money Fund Statistics is here. The cash strategy concentrates investments in LGIPs or money funds. Maximum flexibility and liquidity are […]

Is Crypto in Our Future?

By Marty Margolis on May 30, 2024

Crypto is slowly making its way into the consciousness of mainstream investors, including those who invest public funds. One indication is the passage last week by the House of Representatives of FIT21 (the Financial Innovation and Technology for the 21st Century Act), though it is unlikely to become law in this Congress. Another is a (reluctant?) […]

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Key metrics and trends in the public funds investment market.