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Treasurer reports $20 million redeployed into higher-yield securities; year-to-date returns ahead of forecast
Summary
Ada County treasurer staff reported moving $20 million from the LGIP into securities including mortgage-backed purchases that yielded 3.914% and 4.753%, citing 23–45 basis-point advantages versus current Treasury benchmarks and year-to-date investment earnings of about $5.7 million.
The Ada County Treasurer's Office on April 22 told commissioners it moved $20 million out of its LGIP account and had deployed a little over $16 million into higher-yield investments, including mortgage-backed securities.
"We moved $20 [million] out of our LGIP account... We made a few purchases, a couple of purchases here. The first one is a mortgage-backed security where we deployed about $6 million," said Tim Klein, who reviewed the county portfolio for March. Tim said one purchase yielded about 3.914% to maturity and another yielded about 4.753%, each beating comparable Treasury benchmarks by 23–45 basis points.
Klein explained the county's benchmark choices, noting mortgage-backed securities are compared to the 10-year Treasury because the average life of a mortgage is often 7–10 years. He also said the county's investments have earned roughly $5.7 million year-to-date against a fiscal-year forecast of $9.3 million, putting performance ahead of original expectations.
Commissioners asked about risks tied to Federal Reserve policy and staff said they were monitoring rate moves and geopolitical uncertainty. No formal action was required; the treasurer said staff will continue to rebalance the portfolio when it makes fiscal sense.
The treasurer's presentation did not identify the exact counterparties for each purchase beyond security descriptions and did not set a schedule for future trades in the public discussion.
