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To: The Pleasanton City Council <br />Subject: Suggested actions to improve yields on Investment Portfolio <br />I have reviewed the investment portfolio, dated 5/31/2024, contained in the minutes of the City <br />Council. I believe the City could do better job in improving yields. I would like to offer an <br />example of thinking outside the box. The example is presented for discussion, more detailed <br />analysis would be required before implementation. The thought is to liquidate a portion of the <br />portfolio with extremely low yields, take the losses resulting from the liquidation and invest the <br />net funds in yields approximately 5X the current yield. All the while maintaining equivalent risk. <br />Assumptions (Rounding down to thousands): <br />Portfolio Par Value: $262,690k <br />Market Value: $249,697k <br />Book Value: $262,891k <br />Table of current Bond and CD yields (as of 10/21/2024) <br /> <br />  <br />  <br />  <br />  <br />Examples of Current Government Agency Yields (as of 10/21/2024)  <br />  <br />  <br />  <br />  <br />  <br />  <br />  <br />  <br />  <br />The nominal Yield to Worst (YTW) averages around 4.8% for 5 year maturity.