Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the County Finance topic
No spam. Unsubscribe anytime.
County updates investment policy after rating‑agency adjustments to agency MBS
Summary
Elko County amended its investment policy to remove a triple‑A requirement for agency mortgage‑backed securities after Moody's and other firms re‑rated many U.S. agency obligations, allowing the county to continue current purchases without falling out of policy compliance.
The Elko County Board of Commissioners approved an update to the county investment policy after staff explained rating‑agency changes affected securities that the county routinely purchases.
Amanda Osborne (speaker 18) told the commission that Moody's downgraded some U.S. Treasury‑sponsored obligations and that other agencies' ratings shifted, leaving the county's prior triple‑A requirement for mortgage‑backed securities out of step with the market. "For the county to continue to purchase these bonds, we would like to remove the triple A requirement from the policy," Osborne said, explaining the change is intended to keep the county in compliance with its own policy while allowing continued investment activity. Commissioners moved, seconded and approved the change by voice vote.
Why it matters: The amendment allows county investment staff to continue their current practice of purchasing agency mortgage‑backed securities without having to artificially cease purchases because of rating‑agency reclassifications. The change affects county treasury management and risk policy.
What’s next: The investment policy amendment was approved on the floor; treasury staff will continue implementing the policy within NRS constraints and report to the board on portfolio activity as required.
