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File Number: 16-140 <br />Mortgage Obligations, provided that: <br />a. The securities are rated “AA” or higher by a nationally recognized statistical rating <br />organization (NRSRO). <br />b. They are issued by an issuer having long-term debt obligations rated “A” or higher by at <br />least one NRSRO. <br />c. No more than 20% of the total portfolio may be invested in these securities. <br />d. No more than 5% of the portfolio may be invested in any single Asset-Backed or <br />Commercial Mortgage security issuer. There is no issuer limitation on any Mortgage <br />security where the issuer is the US Treasury or a Federal Agency/GSE. <br />e. The maximum legal final maturity does not exceed five (5) years. <br />2. Appendix A: <br />a. City Issued Securities: <br />i. Maximum maturity - N/A <br />ii. Maximum Amount - N/A <br />iii. Other requirements - usually purchased when originally issued <br />b. Asset-backed, Mortgage backed, Mortgage Pass-through Securities, Collateralized <br />Mortgage Obligations: <br />i. Maximum maturity - 5 years <br />ii. Maximum Amount - 20% of portfolio <br />iii. Other requirements - Securities rated “AA” or higher by one Nationally <br />Recognized Statistical-rating Organization (NRSO) issuer, rating of “A” or higher <br />by one NRSO no limitation on mortgage securities when issuer is US Treasury <br />of Agency <br />c. Supranational Securities: <br />i. Maximum maturity - 5 years <br />ii. Maximum Amount - 30% of portfolio, 10% per issuer <br />iii. Other requirements - Permitted issuers are International Bank for <br />Reconstruction and Development (IBRD), International Finance Corporation <br />(IFC) and Inter-American Development Bank (IADB) <br />3. Appendix B: <br />a. Supra National Securities - US dollar denominated senior unsecured <br />unsubordinated obligations issued or unconditionally guaranteed by the <br />International Bank for Reconstruction and Development, International Finance <br />Corporation, or Inter-American Development Bank, the long-term obligations of <br />which are rated at least "AA-/Aa-" or equivalent by at least two of the three rating <br />agencies (S&P, Moody's, and Fitch). No more than 10 percent of the City's portfolio <br />may be invested in eligible Supra National securities. The maximum maturity of <br />Supra National securities is five (5) years. No more than 10 percent of the portfolio <br />may be invested in eligible Supra National securities. <br />Previous City Council Action(s) <br />The Investment Policy is reviewed annually and was last reviewed by the City Council on June <br />15, 2015 by Resolution No. 2015-111. <br />ATTACHMENTS <br />Page 2 City of San Leandro Printed on 6/14/2016