|
3 Month Treasury Bill
|
The monthly average return for the existing 3 month T-bill
|
|
30 Day Effective Yield
|
Our monthly investments earnings expressed as an interest rate
|
|
30 Day Yield
|
The dollar amount earned on our investments over one month
|
|
6 Month Treasury Bill
|
The monthly average return for the existing 6-month T-bill
|
|
90 Day T-Bill
|
The monthly average return for the existing 90-day T-bill
|
|
Access to Capital
|
Deposits at IL financial institutions that earn a discounted rate of interest on money being loaned for targeted economic initiatives
|
|
Accretion
|
An accounting procedure that gradually increases the discount on a fixed income security up to the par value over the life of the security through periodic changes to income
|
|
Ag-Invest 5yr
|
A linked deposit program that provides low-cost loans to farmers and agricultural professionals for equipment purchases and construction costs on a long-term basis
|
|
Agencies
|
See U. S. Government Agency Securities
|
|
Agricultural Programs
|
A linked deposit loan program for the purpose of providing lower cost of borrowing to an agriculture producer.
|
|
Amortization
|
An accounting procedure that gradually reduces the premium paid on a fixed income security down to the par value over the life of the security through periodic changes to income.
|
|
Annual Basis
|
A statistical technique where a figure covering a period of less than one year is extrapolated to cover a full year.
|
|
Asset
|
Anything owned by an individual that has value, including property, savings and investments.
|
|
Average Pooled Investment Earnings
|
The return on the state portfolio that complies with Government Accounting Standards Board requirements for recognizing market gains and losses.
|
|
Basis Point
|
The smallest measure used in quoting yields on fixed income securities. One basis point is equal to 0.01% of yield; 100 basis points equals 1% yield. A yield that changes from 5.00% and 5.25% increases by 25 basis points.
|
|
Benchmark
|
A standard used for comparison and to evaluate performance.
|
|
Blended Benchmark
|
Blended return of leading indexes
|
|
Bloomberg
|
An electronic network that has analytical tools and financial information, both real time and historical, for nearly all financial markets and investment types worldwide.
|
|
Bloomberg CD Index
|
The average rate paid by the highest rated dealers in the market
|
|
Bond
|
A debt instrument or IOU that is a "promise to pay" sold by corporations or governments to raise money or capital. The bond issuer promises to pay the holder of the bond the principal amount of the loan when the bond matures, plus a fixed rate of interest periodically during the term of the bond.
|
|
Bond Rating
|
A method of determining the likelihood that the issuer of a bond will fail to pay the IOU. Various NSROs analyze the financial strength of issuers and rate the bonds on a scale from AAA to D. On this scale, AAA means highly unlikely to default and D means in default; typically a rating from AAA to BBB is referred to as investment grade and those BB and below are referred to as junk bonds.
|
|
Callable Bond
|
A bond where the issuer has the right to "call" or redeem the bond at a specified price before the scheduled maturity.
|
|
Central Bank
|
The bank that that issues a county's currency, administers monetary policy and holds deposits of other banks. In the United States, the central bank is the Federal Reserve System.
|
|
Certificate of Deposit
|
A debt instrument issued by a bank.
|
|
Certificate of Deposit Benchmarks
|
The Treasurer's Office uses two benchmarks derived from the U.S. Treasury Department's six-month Treasury Bill to evaluate certificates of deposit. The linked deposit benchmark is equal to 80 percent of the six-month Constant Maturity Treasury. The blended CD benchmark is equal to 50 percent of the six-month Constant Maturity Treasury and 50 percent of the discounted six-month CMT. The six-month maturity was chosen because the average reinvestment cycle of the state's certificate of deposit portfolio is about six months.
|