HomeMy WebLinkAboutInvestment Report - Sept. '07 � 1...� City of Palm Desert ���
� City and Redevelopment Agency Portfolios � �
COMPLIANCE ANALYSIS AND INVESTMENT REPORT
September 2007
Paul S. Gibson, C.C.M.T., Treasurer
Thomas W. Jeffrey, J.D., M.B.A., Deputy City Treasurer
Treasurer's Commentary
The Federal Open Market Committee (FOMC)will meet next on October 30 and 31. The Fed Fund Futures market has
assigned a 32°/a probability to a 25 basis-point(0.25%) interest rate cut at that meeting. Since it takes about nine months
for these rate cuts to take effect, the FOMC is focused more on the future than the present.
The slump in the real estate sector continues to deepen. Sales of existing homes in August fell sharply, and home
inventories are currently at an 18-year high. Lennar Corp., the second largest U.S. builder, reported a $514 million quarterly
loss --the largest in its history. Many builders are beginning to discount unsold housing inventory by as much as 30% -
50%. This puts downward pressure on the prices of existing houses.
The financial sector continued to take major hits as Merrill Lynch reported a $5.5 billion writedown for the third quarter due to
subprime mortgages and leveraged loans. Citigroup and UBS are expected to announce writedowns of$5.9 billion and
$3.4 billion, respectively, for the same time period.
Due to a shrinking U.S. dollar, exports are the bright spot in the U.S. economic picture. Imports, however, have become more
expensive for the consumer, and this may increase inflation. Consumer confidence is presently at a two-year low.
�'auLS. �r"l�osz C.C.�1.T.
Treasurer
PORTFOLIO STATISTICS
Dollars in Thousands
SEP-07 AUG-07 JUL-07 JUN-OT MAY-07 APR-07
CITY
Month-End Book Value"' $ 234,244 $ 245,850 $ 256,143 $ 243,098 $ 257,259 $ 248,864
Month-End Market Value"' $ 234,625 $ 245,945 $ 256,176 $ 242,909 $ 257,049 $ 248,991
Paper Gain(Loss) $ 381 $ 95 $ 33 $ (189) $ (210) $ 127
Prior Year Book Variance $ 71,802 $ 76,483 $ 85,202 $ 69,826 $ 77,552 $ 98,111
Interest Earnings $ 988 $ 1,045 $ 1,066 $ 1,029 $ 1,067 $ 952
Yield-To-Maturity 5.01% 5.09% 5.11% 5.11% 5.11% 5.13%
Weighted Maturity(Days) 426 415 308 324 355 376
Effective Duration 0.76 0.75 0.45 0.50 0.50 0.56
RDA
Month-End Book Value"' $ 273,674 $ 289,864 $ 293,026 $ 302,709 $ 311,195 $ 279,009
Month-End Market Value"' $ 274,202 $ 290,104 $ 293,073 $ 302,676 $ 311,011 $ 279,204
Paper Gain(Loss) $ 528 $ 240 $ 47 $ (33) $ (184) $ 195
Prior Year Book Variance $ 146,632 $ 148,263 $ 145,329 $ 158,249 $ 173,739 $ 136,331
Interest Earnings $ 1,117 $ 1,233 $ 1,270 $ 1,271 $ 1,191 $ 1,203
Yield-To-Maturity 5.02% 5.07% 5.10% 5.11% 5.10% 5.09%
Weighted Maturity(Days) 312 314 279 2�4 267 293
Effective Duration 0.48 0.47 0.39 0.40 0.42 0.49
"' Omits SLGSs.
X. Consent Calendar
C. City's/Agency's Compliance Analysis and Investment Report
for September 2007 and October 2007 (.TOINT CONSIDERATION WITH
PALM DESERT REDEVELOPMENT AGENCY) .
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: "" £ �.i��. ....M._� t . . .. , Rec.eivcf Fi C. BY RDA
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� �.e�`�J��a�, �elly i �Q 5�21}.�2rlbon .
:, N��-_ VERIFIED BY �/��('q
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Finef{� Original on file with City Clerk's Office
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City of Palm Desert -- Portfolio Characteristics
September 30, 2007
_. _ .. __ _ . . .
Aqeins� Interval Market Value �General Fund Ageing� \
< 1 M $ 25,488 ,
<2M
< 3M _ I 100 - -
<6M 10,009 � _ gp
< 1 YR 10,967 � '
0 60
<2YR 21,035 ' 36
0
<3YR 44,200 0 40 Z�
<4YR 10,228 i a 2p �� �
<5YR _ � 0 8 9 8 0 0 ,
0
>5YR ' i < 1 M <2M <3M <6M < < < < < > �
Total: S 121,927 , 1YR 2YR 3YR 4YR 5YR SYR J
\
Credit Quality
Ratins�s ' Market Value
AAA $ 154,579
AA 31,022 ��o AAA
A 14,132 77%
Unrated" 33,640 AA
Total: S 233,373 16%
Sector Market Value Asset Allocation
Agencies
MMF $ 64,180 18% MTNs
Agencies 41,158 24%
MTNs 55,281
CAMP 27,863 MMF
RDA Loan 32,785 27%
UB Sweep 11,251 CAMP
LAIF 855 �2��
CP - UB Sweep RDA Loan
Total: S 233,373 5% 140�,
Month Citv Yield LAIF Yield Variance Performance
Oct06 4.99 5.10 -0.11
Nov 5.01 5.13 -0.12 5.4 -
Dec 5.03 5.13 -0.09
Jan07 5.06 5.16 -0.10
Feb 5.08 5.18 -0.11 °
Mar 5.13 5.21 -0.08 m 4�9
AQr 5.13 5.22 -0.10 }
May 5.11 5.25 -0.13
Jun 5.11 5.25 -0.14 4.4
Jul 5.1 1 5.26 -0.15 Oct06 Nov Dec Jan07 Feb Mar Apr May Jun Jul Aug Sep
Aug 5.09 5.25 -0.17
Sep 5.01 5.23 -0.22 �`:;�F �°,. , � �; ,' ` , .'
' Standard and Poors
" LAIF,and City Loan to RDA Page 2 of 9
City of Palm Desert
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 3,023,000 AMERICAN HONDA FINANCE 4.25 3/11/08 $ 3,012,344 5.08 99.55 $ 3,009,391 A1 A+
$ 2,920,000 BANK OF AMER�CA 5.88 2/15/09 $ 2,952,172 5.01 100.97 $ 2,948,458 Aa2 AA-
$ 15,270,000 CITIGROUP 4.13 2/22l10 $ 15,003,199 4.91 98.22 $ 14,997,721 Aa1 AA
$ 2,035,000 CITIGROUP 4.13 2/22/10 $ 1,999,444 4.91 98.22 $ 1,998,714 Aa1 AA
$ 1,000,000 CITIGROUP 4.63 8/3/10 $ 985,264 5.19 99.20 $ 991,977 Aa1 AA
$ 4,000,000 CITIGROUP 4.63 8/3110 $ 3,941,054 5.19 99.20 $ 3,967,908 Aa1 AA
$ 2,000,000 GENERAL ELECTRIC 3.60 10/15/08 $ 1,973,238 4.99 98.49 $ 1,969,832 Aaa AAA
$ 2,035,000 GENERAL ELECTRIC 4.88 10/21/10 $ 1,993,675 5.63 99.91 $ 2,033,085 Aaa AAA
$ 1,891,000 GENERAL ELECTRIC 6.88 11/15/10 $ 1,954,207 5.65 105.56 $ 1,996,155 Aaa AAA
$ 2,000,000 GENERAI ELECTRIC 6.13 2122/11 $ 2,027,008 5.67 103.06 $ 2,061,106 Aaa AAA
$ 2,000,000 IBM 3.80 2/1/08 $ 1,990,936 5.13 99.53 $ 1,990,590 A1 A+
$ 2,000,000 JP MORGAN CHASE 3.70 1/15/08 $ 1,991,324 5.25 99.59 $ 1,991,834 Aa3 A+
$ 3,080,000 WACHOVIA 3.63 2/17109 $ 3,024,749 5.02 98.18 $ 3,023,852 Aa3 A+
$ 2,000,000 WACHOVIA 3.50 8l15/08 $ 1,972,139 5.18 98.68 $ 1,973,668 Aa3 A+
$ 2,000,000 WACHOVIA 7.80 8/18/10 $ 2,146,995 5.02 107.13 $ 2,142,666 Aa3 A+
$ 2,000,000 WAL-MART 6.88 8/10/09 $ 2,065,658 4.93 103.37 $ 2,067,382 Aa2 AA
$ 4,000,000 WEtLS FARGO SANK 6.38 8/1111 $ 4,168,585 5.13 103.44 $ 4,137,744 Aa1 AA-
$ 2,000,000 WELLS FARGO BANK 4.63 8/9/10 $ 1,975,940 5.09 98.95 $ 1,979,046 Aa1 AA-
S 55,254,000 Subtotal S 55,177,930 5.10 5 55,281,128
Federal Agencies--Coupon
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,012,094 4.61 100.84 $ 3,025,313 Aaa AAA
$ 3,000,000 FED FARM CREDIT BANK 4.78 5/3/10 $ 3,012,094 4.61 100.84 $ 3,025,313 Aaa AAA
$ 2,015,000 FED FARM CREDIT BANK 3.38 7/15J08 $ 1,994,909 4.68 98.97 $ 1,994,220 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.38 9/11/09 $ 2,973,705 5.59 99.97 $ 2,999,063 Aaa AAA
$ 1,980,000 FED HOME�OAN BANK 4.75 12/12/08 $ 1,977.033 4.87 100.25 $ 1,984,950 Aaa AAA
$ 3,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 2,993,560 5.40 100.00 $ 3,000,000 Aaa AAA
$ 2,049,000 FED HOME tOAN BANK 4.00 12l151d9 $ 2,413,626 4.87 99.16 $ 2,031,712 Aaa AAA
$ 3,030,000 FED HOME LOAN BANK 4.00 3/10/08 $ 3,017,022 5.02 99.59 $ 3,017,691 Aaa AAA
$ 2,033,000 FED HOME LOAN MTG CORP 4.25 7/15/09 $ 2,012,467 4.87 99.72 $ 2,027,282 Aaa AAA
$ 2,000,000 FED HOME IOAN MTG CORP 4.13 11/18/09 $ 1,970,865 4.88 99.45 $ 1.988,906 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 4.90 11/3/08 $ 1,996,767 5.06 100.41 $ 2,008,248 Aaa AAA
$ 2,062,000 FED HOME LOAN MTG CORP 4.13 7/12/10 $ 1,990,236 5.47 99.22 $ 2,045,891 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 4.63 10/28/09 $ 1,990,345 4.88 100.44 $ 2,008,750 Aaa AAA
$ 2,000,000 FED NAT{ONAL MTG ASSOC 4.25 8l15/10 $ 1,934,952 5.47 99.50 $ 1,990,000 Aaa AAA
S 33,169,000 Subtotal S 32,889,674 5.02 S 33,147,337
"U"= Unrated Page 3 of 10
City of Palm Desert
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Federal Agencies--Callable
$ 2,000,000 FED HOME LOAN BANK 4.20 7/18/08 $ 1,989,909 4.88 99.59 $ 1,991,875 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.05 8/22/08 $ 1,999,777 5.06 100.34 $ 2,006,818 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 5.30 8/13/09 $ 2,000,000 5.30 100.29 $ 2,005,728 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 5.38 2/1/10 $ 2,000,000 5.37 100.28 $ 2,005,625 Aaa AAA
S 8,000,000 Subtotal S 7,989,686 5.15 5 8,010,046
�ocal Government Investment Pool
$ 854,503 L.A.I.F. 0.00 10/1/07 $ 854,503 5.23 100.00 $ 854,503 U U
S 854,503 Subtotal S 854,503 5.23 S 854,503
Local Government Investment Pool
$ 26,370,725 C.A.M.P. 0.00 10/1/07 $ 26,370,725 5.19 100.00 $ 26,370,725 U AAA
$ 1,492,355 C.A.M.P. (HOUSING) 0.00 10/1/07 $ 1,492,355 5.19 100.00 $ 1,492,355 U AAA
S 27,863,079 Subtotal S 27,863,079 5.19 S 27,863,079
Money Market Fund
$ 64,180,343 WF ADVANTAGE GOVT MMF 0.00 10/1/07 $ 64,180,343 4.99 100.00 $ 64,180,343 Aaa AAA
S 64,180,343 Subtotal S 64,180,343 4.99 S 64,180,343
Money Market Fund
$ 11,251,128 HIGHMARK SWEEP 0.00 10/1/07 $ 11,251,128 3.40 100.00 $ 11,251,128 Aaa AAA
S 11,251,128 S 11,251,126 3.40 5 11,251,128
City Loan to RDA
$ 32,785,480 CITY OF PALM DESERT 0.00 10/1/37 $ 32,785,480 5.23 100.00 $ 32,785,480 U U
i 32,785,480 Subtotal s 32,785,480 5.23 S 32,T85,480
Total Investments
S 233,357,533 S 232,991,823 5.01 S 233,373,044
Cash
$ (539,483) CITY MAIN CHKG"' 0.00 1011/07 $ (539,483) 0.00 100.00 $ (539,483) U U
$ 642,785 DESERT WILLOW CHKG 0.00 10/1/07 $ 642,785 0.00 100.00 $ 642,785 U U
$ 1,02�,280 MONTEREY 170 CHKG 0.00 10/1/07 $ 1,027,280 0.00 100.00 $ 1,027,280 U U
$ 84,244 RECREATIONAL FAC CHKG 0.00 10/1/07 $ 84,244 0.00 100.00 $ 84,244 U U
$ 22,250 ART, FOOD&WINE CHKG 0.00 10/1l07 $ 22,250 0.00 100.00 $ 22,250 U U
$ 15,132 FALCON CREST HOA CHKG 0.00 10/1/07 $ 15,132 0.00 100.00 $ 15,132 U U
S 1,252,210 Subtotal S 1,252,210 S 1,252,210
"U"= Unrated Page 4 of 10
City of Palm Desert
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S8P
Total Investments and Cash
S 234,609,743 S 234,244,033 $ 234,625,253
"' BOOK OVERDRAFT--NOT A BANK OVERDRAFT. BA�ANCE SHOWN PRIOR TO INCOMING TRANSFER OF
FUNDS FROM THE CITY'S SWEEP ACCOUNT.
%of Portfolio
Corporate Issuers (Market Va{ue)
AMERICAN HONDA FINANCE 1.28%
BANK OF AMERICA 1.26%
CITIGROUP 9.36%
GENERAL ELECTRIC 3.44%
IBM 0.85%
JP MORGAN CHASE 0.85%
WACHOVIA 3.04%
WAL-MART 0.88%
WELLS FARGO BANK 2.61%
%of Portfolio
Agency Issuers (Market Value)
FED FARM CREDIT BANK 3.43%
FED HOME LOAN BANK 6.40%
FED HOME LOAN MTG CORP 5.15%
FED NATIONAL MTG ASSOC 2.56%
"U"= Unrated Page 5 of 10
Palm Desert Redevelopment Agency-- Portfolio Characteristics
September 30, 20D7
Aqeinq Interval Market Value � l.
< 1 M $ 6,005 Portfotio Ageing wlo SLGSs`
<2M -
<3M - 100 ---- --
90
<6M 9,977 ^. 80
< 1YR 17,854 = �� '
<2YR 34,918 0 50 38
<3YR 19,133 0 30 19
21
<4YR 4,051 a ?0 � 0 0 1� 4 0 0
< 5YR - p �
>5YR - < 1M <2M <3M <6M < < < < < >
Total: S 91,938 1YR 2YR 3YR 4YR 5YR 5YR J
\
ualit ' Market Value Credit Quality
AAA $ 235,865 '�`
qq 18,043 as°ia
A 8�990 Unrated"
Unrated " 10,802 4% qq A
Total: S 273,700 7%3%
Sector Marlcet Value Asset Allocation
MMF $ 173,627
Agencies 58,690 MMF
LAIF 10,802 �%
MTNs 27,033
CAMP 3,348
CP ' MTNs Agencies
Treasuries - �p% LAIF 22%
Total: S 273,700 4%
Month RDA Yield LAIF Yield Variance Performance
Oct06 d.95 5.10 -0.15
Nov 4.95 5.13 -0.18 5.4
Dec 4.95 5.13 -0.18
Jan07 5.05 5.16 -�•�� 0 5.0
Feb 5.06 5.18 -0.12
Mar 5.11 5.21 -0.11 �
Apr 5.09 5.22 -0.13 } 4.6
May 5.10 525 -0.15
Ju� 5.11 5.25 -0.14 a.2
Ju) 5.10 5.26 -0.16 Oct06 Nov Dec Jan07 Feb Mar Apr May Jun Jul Aug Sep
Aug 5.07 5.25 -0.19
Sep 5.02 5.23 -0.21 •LAIF Yield ■RDA Yield
' Standard and Poors
" LAIF Page 6 of 9
Palm Desert Redevelopment Agency
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Medium-Term Notes
$ 4,000,000 CITIGROUP 6.20 3l15l09 $ 4,058,176 5.13 101.70 $ 4,067,832 Aa1 AA-
$ 4,0�0,000 JP MORGAN CHASE 3.50 3/15/09 $ 3,979,998 5.12 97.84 $ 3,982,182 Aa3 A+
$ 3,055,000 JP MORGAN CHASE 3.50 3/15/09 $ 2,987,444 5.12 97.84 $ 2,989,082 Aa3 A+
$ 2,000,000 MERRILL LYNCH 3.13 7/15/08 $ 1,963,991 5.49 97.88 $ 1,957,594 Aa3 AA-
$ 2,000,000 FIRST UNION NAT BANK 5.80 12/1/08 $ 2,017,146 5.00 100.92 $ 2,018,418 Aa3 A+
$ 3,000,000 WAL-MART 6.88 8110l09 $ 3,111,209 4.76 103.37 $ 3,101,073 Aa2 AA
$ 2,000,000 WELLS FARGO BANK 4.00 8/15/08 $ 1,984,421 4.96 98.96 $ 1,979,204 Aa1 AA-
$ 3,000,000 WELLS FARGO BANK 4.13 3/10/OS $ 2,986,526 5.18 99.34 $ 2,980.056 Aa1 AA-
$ 2,020,000 WELLS FARGO BANK 4.20 1/15/10 $ 1,988,869 4.92 98.33 $ 1,986,177 Aa1 AA-
$ 2,025,000 WELLS FARGO BANK 3.13 4/1/09 $ 1,977,666 4.76 97.35 $ 1,971,263 Aa1 AA-
E 27,170,000 Subtotal S 27,055,447 5.05 S 27,032,881
Federal Agencies-Coupon
$ 2,000,000 FED FARM CREDIT BANK 6.45 10/7/09 $ 2,057,243 4.88 103.93 $ 2,078,588 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 3.63 10/24/08 $ 1,975,106 4.89 99.03 $ 1,980,625 Aaa AAA
$ 2,000,000 FED FARM CREDIT BANK 4.75 8/3/09 $ 1,995,970 4.87 100.69 $ 2,013,750 Aaa AAA
$ 4,900,000 FED FARM CREDIT BANK 4.90 9/22/10 $ 4,934,902 4.65 10125 $ 4,961,250 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/08 $ 3,948,559 4.79 99.66 $ 3,956,353 Aaa AAA
$ 3,970,000 FED HOME LOAN BANK 4.25 9/12/OS $ 3,948,559 4.79 99.66 $ 3,956,353 Aaa AAA
$ 4,500,000 FED HOME �OAN BANK 4.38 9111l09 $ 4,460,558 5.59 99.97 $ 4,498,594 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 3.50 11/3/09 $ 1,947,813 4.88 98.16 $ 1,963,125 Aaa AAA
$ 4,000,000 FED HOME LOAN BANK 4.63 9/12/08 $ 3,991,413 4.84 100.00 $ 4,000,000 Aaa AAA
$ 2,005,000 FED HOME LOAN BANK 3.88 7/24/09 $ 1,971,428 4.89 98.97 $ 1,984,323 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11/11 $ 1,960,238 5.49 10128 $ 2,025,625 Aaa AAA
$ 2,000,000 FED HOME LOAN BANK 4.88 3/11111 $ 1,959,707 5.50 101.28 $ 2,025,625 Aaa AAA
$ 1,990,000 FED HOME LOAN BANK 4.00 3/10/08 $ 1,980,178 5.16 99.59 $ 1,981,916 Aaa AAA
$ 2,049,000 FED HOME LOAN MTG CORP 4.00 12/15/09 $ 2,013,504 4.87 99.16 $ 2,031,712 Aaa AAA
$ 2,000,000 FED HOME l.OAN MTG CORP 5.00 7/23/08 $ 1,998,969 5.07 100.23 $ 2,004,602 Aaa AAA
$ 2,000,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 2,069,470 5.54 106.59 $ 2,131,875 Aaa AAA
$ 3,734,000 FED HOME LOAN MTG CORP 6.88 9/15/10 $ 3,863,938 5.54 106.59 $ 3,980,211 Aaa AAA
$ 4,155,000 FED NATIONAL MTG ASSOC 6.63 9/15/09 $ 4,282,607 4.89 104.13 $ 4,326,394 Aaa AAA
$ 2,000,000 FED NATIONAL MTG ASSOC 3.88 11/17/08 $ 1,979,192 4.87 99.22 $ 1,984,375 Aaa AAA
S 53,273,000 Subtotal S 53,339,353 5.02 S 53,885,295
Federal Agencies--Callable
$ 5,000,000 FED HOME LOAN BANK 5.25 2/1108 $ 5,000,000 5.25 100.09 $ 5,004,688 Aaa AAA
S 5,000,000 Subtotal ; 5,000,000 5.25 S 5,004,688
"U"= Unrated Page 7 of 10
Palm Desert Redevelopment Agency
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
Local Government Investment Pool
$ 1,057,074 L.A.I.F. 0.00 10/1/07 $ 1,057,074 5.25 100.00 $ 1,057,074 U U
$ 3,681,202 L.A.I.F.(HOUSING) 0.00 10/1/07 $ 3,681,202 5.25 100.00 $ 3,681,202 U U
$ 6,063,528 �.A.I.F. BOND PROCEEDS 0.00 10/1/07 $ 6,063,526 5.25 100.00 $ 6,063,528 U U
S 10,801,803 Subtotal S 10,801,803 5.25 S 10,801,803
Local Government Investment Pool
$ 3,347,955 C.A.M.P. 0.00 10/1l07 $ 3,347,955 5.19 100.00 $ 3,347,955 U AAA
S 3,347,955 Subtotal S 3,347,955 5.19 S 3,347,955
Money Market Fund
$ 173,627,003 WF ADVANTAGE GOVT MMF 0.00 10/1/07 $ 173,627,003 4.99 100.00 $ 173,627,003 Aaa AAA
S 173,627,003 Subtotal S 173,627,003 4.99 S 173,627,003
Total Investments
S 273,219,761 S 273,171,561 5.01 S 273,699,625
Cash
$ 150,566 HOUSING AUTN CHKG 0.00 10/1/07 $ 150,566 0.00 100.00 $ 150,566 U U
$ 352,068 HOUSING AUTH TRUST 0.00 10/1/07 $ 352,068 0.00 100.00 $ 352,068 U U
s 502,634 Subtotai S 502,634 S 502,634
Total Investments and Cash
S 273,722,396 =Z 273,674,196 S 274,202,259
%of Portfolio
Corporate Issuers (Market Value)
CITIGROUP 1.48%
JP MORGAN CHASE 2.54%
MERRILL LYNCH 0.71%
FIRST UNION NAT BANK 0.74%
WAL-MART 1.13%
WE�LS FARGO BANK 0.72%
"U"= Unrated Page 8 of 10
Palm Desert Redevelopment Agency
Portfolio Holdings
September 30, 2007
Market Ratings
Par Value Issuer Coupon Maturity Cost YTM Price Value Moody's S&P
%of Portfolio
Agency lssuers (Market Value)
FED FARM CREDIT BANK 4.02%
FED HOME LOAN BANK 11.45%
FED HOME LOAN MTG CORP 3.70%
FED NATIONAL MTG ASSOC 2.30%
"U"= Unrated Page 9 of 10
STATEMENT OF COMPLIANCE
The investment portfolios of the City of Palm Desert("City")and the Palm Desert Redevelopment Agency("RDA")are
governed by federal, state,and local law. The City Treasurer's"Statement of Investment Policy"is more restrictive than the
California Government Code. The Palm Desert Audit, Investment, and Finance Committee and the Palm Desert City
Council review the Statement of Investment Policy annually.
For the month ended Seplember 30,2007, the City and the RDA investment portfolios were in compliance with all applicable
federal, state, and local laws and regulations. The City Treasury continued to pursue conservative and prudent investment
strategies, based upon the stated objectives of safety, liquidity, and yield(in order of priority).
Barring unforeseen events, the City Treasury should have sufficient cash to finance the operations of the City of Palm Desert
and the Palm Desert Redevelopment Agency over the next six months. In addition, portions of either the City or the RDA
portfolio could be liquidated in order to meet any significant, unexpected cash requirements.
Bloomberg L.P. and Interactive Data Corporation provided the data and the analytical tools that were used to calculate the
markel value of all securities in the City and the RDA investment portfolios. State and Locaf Govemment Series securities
are held in escrow accounts, and are therefore not included in this report as assets. All balances are bank balances.
Respectfully submitted on October 23,2007,
��s ��z�ori, c.c.�r. �
City Treasurer
SUMMARY OF AUTHORIZED INVESTMENTS
California Government Code City Investment Policy
CA Govt Maximum Maximum Gluality Maximum Maximum Quality %of City %of RDA
Code Investment Category Maturity Limit SBPJMdys Maturity Limit S8P/Mdys Portfolio Portfolio
53601 a Palm Desert Bonds 5 Years No Limit Not Authorized 1)
53601 b) U.S.Treasuries 5 Years No Limit 5 Years No Limit 0.0% 0.0%
53601 c CA State Debt 5 Years No Limit Not Authorized
53601 d) CA Local A ency Debt 5 Years No Limit Not Authori2ed
53601 e Federal A encies 5 Years No Limit 5 Years 30% 6% 17.6% 21.4%
53601 Bankers's Acce tances 180 Da s 40% 180 Oa s 40% A-1 8 P-1 - -
53601 Commercial Paper Z70 Da s 25% A-1+or P-1 270 Da s 25% A-1+or P-1 0.0% 0.0%
53601 h Ne otiable CDs 5 Years 30% 5 Years 30% AA-or Aa3 - -
53601 i Repos 1 Year No Limit 30 Da s 20% AAA 8 Aaa - -
53601(i) Reverse Repos 92 Da s 20% Not Authorized
53601 ' Medium-Term Notes 5 Years 30% A 5 Years 30% A 23.7o�a 9 go�a
53601 k) Mutual Funds 90 Da s 20% AAA 8 Aaa 90 Da s 20%(2) AAA 8�Aaa 32.4% 63.6°/a
53601(I) Trust Indenture Debt Not Authorized
53601 m Secured Bank De osits 5 Years No Limit Not Authorized
53601(k) Local Govemment AAA$Aaa AAA 8�Aaa
Investment Pools 90 Da s 20% or Advisor 90 Da s 20% (2) or Advisor 12.0% 1.2°/a
53601(n) Mortgage-Backed 5 Years 20% A(Issuer)8 Not Authorized
Securities AA Securit
LAIF No Limit No Limit 0.4% 4.0%
(1) The City loan to RDA, which is not a bond, has been approved by the Palm Desert City Council. 85.9% 100.0%
(2) Maximum limit for mutual funds and local overnment investment pools,excludin bond proceeds.
' Cerlified California Municipa/Treasurer Page 10 of 10