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INVESTMENT OPTIONS
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Renee Couch, Comal County Sam Vaughan, FNC October 16, 2019
December 21, 2018…Jacksonville, Florida VyStar Credit Union 2-Year CD @ 3.25%
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INVESTMENT OPTIONS Renee Couch, Comal County Sam Vaughan, FNC - - PowerPoint PPT Presentation
INVESTMENT OPTIONS Renee Couch, Comal County Sam Vaughan, FNC - - PowerPoint PPT Presentation
INVESTMENT OPTIONS Renee Couch, Comal County Sam Vaughan, FNC October 16, 2019 1 December 21, 2018Jacksonville, Florida VyStar Credit Union 2-Year CD @ 3.25% 2 WHAT IS THE STORY? Every little bit helps We can only do so much
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WHAT IS THE STORY?
- Every little bit helps
- We can only do so much…
- with investment options we understand…
- provided by people we trust…
- to ensure an adequate connection to the market
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EXPLORE/EXPLOIT TRADE-OFF
- Are we gathering
information?
- Are we using that
information to get the best possible result?
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WHAT IS OUR INTERVAL?
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- Explore when we have
time to use the resulting knowledge…
- Exploit when we’re ready
to cash in.
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DO WE HAVE A “REGRET MINIMIZATION FRAMEWORK”?
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LET’S EXPLORE…
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NO
- Repurchase Agreements
- Securities Lending
- Bankers Acceptances
- Commercial Paper
- Guaranteed Investment
Contracts YES
- Local Government
Investment Pools and Money Market Funds
- Certificates of Deposit
- Government Obligations
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…BECAUSE
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SAFETY OF PRINCIPAL LIQUIDITY REGULAR CURRENT INCOME POOLS/ MMF YES YES YES CDs YES PERHAPS YES GOV’T YES YES YES
Source: Barron’s Finance & Investment Handbook
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POOLS AND MONEY MARKET FUNDS
- What are we getting
- urselves into?
- What do we need to look
- ut for?
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MONEY IN (JUST THE) BANK?
0.5 1 1.5 2 2.5 3 Q4 '14 Q1 '15 Q2 Q3 Q4 Q1 '16 Q2 Q3 Q4 Q1 '17 Q2 Q3 Q4 Q1 '18 Q2 Q3 Q4 Q1 '19 Q2 Q3
Rate Comparison 12/31/14-9/30/19
BANK GOV'T POOL PRIME POOL
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Source: Texpool
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WHY IS THAT?
0.5 1 1.5 2 2.5 3 Q4 '14 Q1 '15 Q2 Q3 Q4 Q1 '16 Q2 Q3 Q4 Q1 '17 Q2 Q3 Q4 Q1 '18 Q2 Q3 Q4 Q1 '19 Q2 Q3
Rate Comparison 12/31/14-9/30/19
BANK GOV'T POOL PRIME POOL FED FUNDS
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Sources: TexPool, Federal Reserve Bank of New York
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CERTIFICATES OF DEPOSIT
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- What are the different
ways to get these?
- What do we need to
remember?
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ADDING SOME CDs…
0.5 1 1.5 2 2.5 3 Q4 '14 Q1 '15 Q2 Q3 Q4 Q1 '16 Q2 Q3 Q4 Q1 '17 Q2 Q3 Q4 Q1 '18 Q2 Q3 Q4 Q1 '19 Q2 Q3
Rate Comparison 12/31/14-9/30/19
BANK GOV'T POOL PRIME POOL FED FUNDS CDs
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Sources: TexPool, Federal Reserve Bank of New York, FNC
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GOVERNMENT OBLIGATIONS
- What types are available
to us?
- Is there anything to
worry about?
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OUTSIDE THE “LAB”
- Cash flows change
- Service providers change
- Personnel changes
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TO SUMMARIZE:
- Every little bit helps
- We can only do so much…
- with investment options we understand…
- provided by people we trust…
- to ensure an adequate connection to the market
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THANK YOU!
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If any of these securities are callable, we have chosen to use the final maturity date. Although all information has been obtained from
sources which Financial Northeastern Corporation and Financial Northeastern Securities believe to be reliable we do not guarantee its accuracy or completeness. All prices, yields, and availability are subject to change without notice. Securities offered through Financial Northeastern Securities, Inc. Financial Northeastern Corporation FNC Insurance Services, Inc. Financial Northeastern Securities, Inc. Member FINRA, SIPC Companies Related By Common Ownership www.financialnortheastern.com 100 Passaic Avenue • Second Floor • Fairfield, NJ 07004 • 800-362-9876 • Fax: 973-882-8845 485 Metro Place South • Suit 465 • Dublin, OH 43017 • 877-889-1095 • Fax: 614-789-1677 8717 Ken Aaron Court• Austin, TX 78717• 800-362-9876 • Fax: 886-328.3560