HomeMy WebLinkAbout64132 (2)2013
City of Palm Deser�
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ECONOMIC COMMENTARY
The Federal Reserve is mapping an exit ftom the stimulus. The timing of winding
down the Fed's $85 billion-a-month bond-buying program remains uncertain,
however. Fifty-five percent of private economists believe that the Fed will begin
shrinking its bond purchases in the second half of 2013, while another 45
percent believe that this will happen in 2014 or later. Fed o�cials want to see
a substantial improvement in the job market before they start the wind-down.
Even then, the Fed may not boost short-term interest rates for months or even
years later.
Wells Fargo Bank is forecasting U.S. economic growth of 1.2 percent in the
second quarter of 2013, with a pick-up to 2 percent in the second half as
business investment and housing add to growth. Government will continue
to be a drag on growth, however, as spending at federal and state levels
continues to be cut back. Rising government revenue from tax collections and
bailout paybacks are shrinking the federal deficit faster that expected. This
may lead to a more intransigent Congress since neither side will believe that
it has to make concessions in order to reduce the deficit. The Dow Jones
Industrial Average closed above 15,000 for the first time as investors poured
into the stock market, seeing few altematives to stocks.
The RDA Successor Agency investment portfolio fell by $15.8 million in April,
due to the payment of debt service.
9'au�S. C�a�, C'.C'..�Lt.✓�: �`
City Treasurer
" Certified California Municipal Treasurer
PORTFOLIO STATISTICS
Thousands of Dollars
Month-End Book Value
Month-End Market Value
Paper Gain (Loss)
Prior Year Book Variance
Interest Earnings
Yield-To-Maturity
Weighted Maturity (Days)
Effective Duration
$
$
$
$
$
199,761 $
199,776 $
15 $
(10,437) $
53 $
0.33%
29
0.01
197,943 $
197,962 $
19 $
(12,660) $
56 $
0.34%
29
0.02
201,340 $
201,384 $
44 $
(11,127) $
52 $
0.34%
28
0.02
Deputy City Treasurer
Thomas W. Jeffrey, J.D., M.B.A.
I nvestment
Markets Team
City Treasurer
Paul S. Gibson, C.C.M.T.
��>�Xl�
The treasurer shalt invest all
public monies in a manner
that ensures safety of
principal; sufficient liquidity
to finance the City's
expenditures; and the
highest yield possible after
the previous finro objectives
have been met.
198,185 $
198,223 $
38 $
(32,215) $
55 $
0.35°/a
29
0.03
192,086 $
192,120 $
34 $
(14,228) $
54 $
0.34%
31
0.03
194, 781
194, 809
28
1,165
58
0.37%
29
0.03
All data as of April 30, 2013