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Exhibit A <br />Glossary of Investment Terms <br />AGENCIES. Shorthand market terminology for any obligation issued by a government- <br />sponsored entity (GSE), or a federally related institution. Most obligations of GSEs <br />are not guaranteed by the full faith and credit of the US government. Examples <br />are: <br />FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the <br />agricultural industry. FFCB issues discount notes and bonds. <br />FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing <br />market. FHLB issues discount notes and bonds. <br />FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit <br />and liquidity in the housing market. FHLMC, also called "FreddieMac" issues <br />discount notes, bonds and mortgage pass-through securities. <br />FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association <br />was established to provide credit and liquidity in the housing market. FNMA, <br />also known as "FannieMae," issues discount notes, bonds and mortgage pass- <br />through securities. <br />GNMA. The Government National Mortgage Association, known as "GinnieMae," <br />issues mortgage pass-through securities, which are guaranteed by the full faith <br />and credit of the US Government. <br />PEFCO. The Private Export Funding Corporation assists exporters. Obligations of <br />PEFCO are not guaranteed by the full faith and credit of the US government. <br />TVA. The Tennessee Valley Authority provides flood control and power and <br />promotes development in portions of the Tennessee, Ohio, and Mississippi <br />River valleys. TVA currently issues discount notes and bonds. <br />ASKED. The price at which a seller offers to sell a security. <br />ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases <br />or by pools of revolving lines of credit. <br />AVERAGE LIFE. In mortgage -related investments, including CMOs, the average time to <br />expected receipt of principal payments, weighted by the amount of principal <br />expected. <br />BANKER'S ACCEPTANCE. A money market instrument created to facilitate international <br />trade transactions. It is highly liquid and safe because the risk of the trade <br />transaction is transferred to the bank which "accepts" the obligation to pay the <br />investor. <br />BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial <br />market index, which reflects the mix of securities allowed under a specific <br />investment policy. <br />BID. The price at which a buyer offers to buy a security. <br />BROKER. A broker brings buyers and sellers together for a transaction for which the broker <br />receives a commission. A broker does not sell securities from his own position. <br />CALLABLE. A callable security gives the issuer the option to call it from the investor prior <br />to its maturity. The main cause of a call is a decline in interest rates. If interest <br />rates decline since an issuer issues securities, it will likely call its current securities <br />and reissue them at a lower rate of interest. Callable securities have reinvestment <br />15 <br />