schedule of investments fiscal year 2011 - State of Wisconsin ...
schedule of investments fiscal year 2011 - State of Wisconsin ...
schedule of investments fiscal year 2011 - State of Wisconsin ...
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purchase, sell, or hold a security inasmuch as it does not<br />
comment as to market price or suitability for a particular<br />
investor. The ratings are based on current information<br />
furnished to Standard & Poor’s by the issuer or obtained by<br />
Standard & Poor’s from other sources it considers reliable.<br />
Standard & Poor’s does not perform an audit in connection with<br />
any rating and may, on occasion, rely on unaudited fi nancial<br />
information. The ratings may be changed, suspended, or<br />
withdrawn as a result <strong>of</strong> changes in, or unavailability <strong>of</strong>, such<br />
information, or based on other circumstances.<br />
KEY TO<br />
BOND TYPE OF CLASSIFICATION<br />
ABS<br />
Asset Backed Securities - securities collateralized by assets<br />
that are not mortgage loans.<br />
AGY<br />
Agency Securities - securities issued by federally related<br />
institutions and U.S. government-sponsored entities.<br />
BA<br />
Bankers’ Acceptance - A bankers’ acceptance is a credit<br />
instrument used to fi nance both domestic and international<br />
self-liquidating transactions. By defi nition it is “. . . a draft or<br />
bill <strong>of</strong> exchange, whether payable in the United <strong>State</strong>s or<br />
abroad and whether payable in dollars or some other money,<br />
accepted by a bank or trust company, or a fi rm, company, or<br />
corporation engaged generally in the business <strong>of</strong> granting<br />
Bankers’ acceptance credits.”<br />
BILL<br />
Bill - A Treasury bill is an obligation <strong>of</strong> the United <strong>State</strong>s<br />
Government to pay the bearer a fi xed sum after a specifi c<br />
number <strong>of</strong> days from the date <strong>of</strong> issue. These debt instruments<br />
are sold by the U.S. Treasury at a discount through competitive<br />
bidding, and the return to the investor is the difference<br />
between the purchase price and the face or par value.<br />
BOND<br />
Bond - A bond is a creditor instrument, a corporate or<br />
governmental obligation to repay the loan at some future<br />
maturity date.<br />
CD<br />
Certifi cate <strong>of</strong> Deposit - A negotiable certifi cate <strong>of</strong> deposit, or<br />
CD, is a marketable receipt for funds deposited in a bank for<br />
a specifi c period at a specifi c rate <strong>of</strong> interest. The owner <strong>of</strong><br />
the CD at the time <strong>of</strong> its maturity receives both principal and<br />
interest, while its readily salable feature enables the original<br />
purchaser to retrieve his funds before maturity by selling the<br />
instrument to another holder.<br />
CBO<br />
Collateralized Bond Obligation - Notes which are secured by<br />
a pool <strong>of</strong> corporate bonds.<br />
CMO<br />
Collateralized Mortgage Obligation - Bonds which are secured<br />
by a pool <strong>of</strong> residential mortgages or mortgage pass-through<br />
securities. The cash fl ows generated by the mortgages in<br />
the collateral pool are used to pay principal and interest to<br />
bondholders.<br />
- 170 -<br />
CP<br />
Commercial Paper - Commercial Paper refers to short-term<br />
unsecured promissory notes sold by large businesses at<br />
a discount to dealers, institutional investors, and other<br />
corporations. Since the notes are unsecured and bear only<br />
the name <strong>of</strong> the borrower, the market has generally been<br />
dominated by large corporations with impeccable credit<br />
ratings. Notes are issued in multiples <strong>of</strong> $1,000, ranging<br />
upward to $5.0 million or more. Maturities may vary from<br />
30 to 270 days. Paper maturing beyond 270 days must be<br />
registered with the Securities and Exchange Commission.<br />
This requirement excludes the use <strong>of</strong> maturities greater than<br />
270 days.<br />
CONV<br />
Convertible - Under the terms <strong>of</strong> the bond indenture, the<br />
holder may exchange the bonds for stock <strong>of</strong> the corporation<br />
issuing the bond.<br />
DEB<br />
Debenture - Debentures are unsecured bonds protected only<br />
by the general credit <strong>of</strong> the borrowing company.<br />
DEMAND<br />
Demand - an account from which deposited funds can be<br />
withdrawn at any time without any notice to the depository<br />
institution.<br />
DN<br />
Discount Note - Discount Notes are noninterest-bearing<br />
money market instruments that are issued at a discount and<br />
redeemed at maturity for full face value.<br />
FRN<br />
Floating Rate Note - Interest-bearing debt security, issued<br />
both in the U.S. and the Euromarket, on which the interest<br />
rate is indexed to a short-term instrument, generally three- or<br />
six-month LIBOR or Treasury bills.<br />
GA<br />
Government Agency - See AGY (Agency Securities).<br />
GOVT<br />
Government - Direct obligations <strong>of</strong> the federal government.<br />
I/O<br />
Interest Only - Bonds that receive some or all <strong>of</strong> the interest<br />
portion <strong>of</strong> the underlying collateral and little or no principal.<br />
I/O bonds have either a notional or nominal amount <strong>of</strong><br />
principal.<br />
MBS<br />
Mortgage Backed Security - Bonds backed by an undivided<br />
interest in a pool <strong>of</strong> mortgages or trust deeds. Income from<br />
the underlying mortgages is used to pay <strong>of</strong>f the securities.<br />
NOTE<br />
Note - Coupon issues with a relatively short original maturity<br />
are <strong>of</strong>ten called notes. Treasury notes are coupon securities<br />
that have an original maturity <strong>of</strong> up to 10 <strong>year</strong>s. (Also see<br />
”Commercial Paper’’)<br />
OPTION<br />
Option - A contract in which the seller <strong>of</strong> the option grants the<br />
buyer <strong>of</strong> the option the right to purchase from, or sell to, the<br />
seller a designated instrument at a specifi ed price within a<br />
specifi ed period <strong>of</strong> time.