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<br /> <br />Consulting Services Agreement between City of San Leandro and 7/1/2021 <br />Chandler Asset Management for Investment Services Exhibit F – Page 14 of 19 <br /> <br /> <br />BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market <br />index, which reflects the mix of securities allowed under a specific investment policy. <br /> <br />BID. The price at which a buyer offers to buy a security. <br /> <br />BROKER. A broker brings buyers and sellers together for a transaction for which the broker <br />receives a commission. A broker does not sell securities from his own position. <br /> <br />CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its <br />maturity. The main cause of a call is a decline in interest rates. If interest rates decline since <br />an issuer issues securities, it will likely call its current securities and reissue them at a lower <br />rate of interest. Callable securities have reinvestment risk as the investor may receive its <br />principal back when interest rates are lower than when the investment was initially made. <br /> <br />CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a <br />certificate. Large denomination CDs may be marketable. <br /> <br />CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement <br />service that allows local agencies to purchase more than $250,000 in CDs from a single <br />financial institution (must be a participating institution of CDARS) while still maintaining <br />FDIC insurance coverage. CDARS is currently the only entity providing this service. <br />CDARS facilitates the trading of deposits between the California institution and other <br />participating institutions in amounts that are less than $250,000 each, so that FDIC <br />coverage is maintained. <br /> <br />COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or <br />repurchase agreement. Also, securities pledged by a financial institution to secure deposits <br />of public monies. <br /> <br />COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash <br />flows of mortgage securities (and whole loans) to create securities that have different levels <br />of prepayment risk, as compared to the underlying mortgage securities. <br /> <br />COMMERCIAL PAPER. The short-term unsecured debt of corporations. <br /> <br />COST YIELD. The annual income from an investment divided by the purchase cost. Because it does <br />not give effect to premiums and discounts which may have been included in the purchase <br />cost, it is an incomplete measure of return. <br /> <br />COUPON. The rate of return at which interest is paid on a bond. <br /> <br />CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely <br />manner due to changes in the condition of the issuer. <br /> <br />155