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Baltimore City treasury reports $1.085 billion in securities purchases, $740 million redeemed; opioid funds to be reinvested short term
Summary
Treasury staff told the Board of Finance the city bought $1,085,000,000 in securities and redeemed $740,000,000 between June 16 and Aug. 15, and that opioid-settlement funds that matured will be reinvested for six months.
Baltimore City Treasury reported to the Board of Finance that, between June 16 and Aug. 15, the city made $1,085,000,000 in securities purchases and had $740,000,000 in redemptions during the same period. Treasury staff said proceeds from maturing securities and incoming tax receipts drove the turnover.
Treasury staff member presenting the report said the city will re‑invest opioid‑settlement funds that matured after a six‑month holding period into another short‑term instrument for six months while additional opioid receipts arrive. “We had that invested for a short term for 6 months. It came due, and we're going to reinvest that for another short term for 6 months until all the rest of the, opioid money comes in,” the presenter said.
The same presentation described the city’s hedging and swap positions. Treasury staff reported the portfolio is shrinking in notional hedges and that the city has remaining swap exposure tied to parking and water revenue. The presenter reported a parking swap with a notional amount described in the report as $43,000,000 and a fair market value excerpted by staff as roughly $4,157,000; the transcript also contained a separate market‑value figure for the swap portfolio that was not clearly consistent across lines and was therefore not reconciled in the board presentation.
Treasury staff noted market conditions since May had affected valuations: “Between May and July, there was about a 40 basis point increase in the 10‑year Treasury,” the presenter said, and later referenced a 10‑year Treasury yield of 4.89% in July.
Board members had no substantive questions after the presentation, and the board voted to accept the securities report. The motion to approve the report was moved and seconded and carried with the board recording the motion as passed in the public meeting.
The presentation did not provide line‑item detail for every security purchase or full reconciled swap market values in the public transcript; staff indicated the purchases occurred as part of ordinary cash management when tax receipts arrive and when other securities matured.
