schedule of investments fiscal year 2011 - State of Wisconsin ...

REPO
Repurchase Agreement - A repurchase agreement consists
of two simultaneous transactions. One is the purchase of
securities (collateral) by an investor from a bank or dealer. The
other is the commitment by the bank or dealer to repurchase
the securities at the same price at some mutually agreed
future date. The collateral most frequently used is Treasury,
GNMA or other agency securities, but may include any of the
better-known money market instruments.
STEPPED RATE
Stepped Rate - an interest rate that increases to predetermined
levels on specifi c dates as stated in the bond indenture.
STRIP
Zero Coupon Bond - see Zero Coupon Bond.
SWAP
Swap - an agreement whereby two parties agree to exchange
periodic payments. The dollar amount of the payments is
based on a notional principal amount. The dollar amount each
counterparty pays to the other is the agreed upon periodic
factor multiplied by the notional principal amount. The factor
may be based on interest rates, currency, or other economic
indicators.
TRIPARTY
Triparty - a repurchase agreement (See REPO) in which a
custodian bank acts as an intermediary between the two
parties to the repo.
UST
United States Treasury obligation.
VARIABLE RATE
Variable Rate - a fl oating interest rate that is reset at specifi ed
intervals according to a predetermined formula.
VRN
See FRN (fl oating rate note).
ZERO COUPON BOND
Zero Coupon Bond - a Debt obligation issued without coupons
at a substantial discount from its maturity value. The interest
received by the investor is the difference between the
purchase price and the redemption value.
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