Treasury Tax & Loan Investment Program Term Investment Option (TIO) Program Overview Updated September 2009.

Slides:



Advertisements
Similar presentations
6 Money Markets. Chapter Objectives Provide a background on money market securities Explain how institutional investors use money markets Explain the.
Advertisements

Money Market Instruments. n money market instruments are defined as debt instruments with a maturity of one year or less. Money Markets serve important.
The Money Market – By Prof. Simply Simple
Collateral Monitoring for the Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties Under 31 CFR Part 225 Department of.
Financial Management F OR A S MALL B USINESS. FINANCIAL MANAGEMENT 2 Welcome 1. Agenda 2. Ground Rules 3. Introductions.
Essentials of Corporate Finance Chapters 12, 13, 14, and 15
Chapter 16 – Treasury Market Debt Instruments of the U.S. Government Largest borrower in the world Very liquid markets Considered risk-free Main Types.
1 Audits of Public Debt & Public Assets Jose Oyola, Ph.D., CPA US Government Accountability Office INTOSAI Public Debt Working Group Republic of the Fiji.
CHAPTER 7 Money Markets. Copyright© 2003 John Wiley and Sons, Inc. Overview of the Money Market Short-term debt market -- most under 120 days. A few high.
Basic Investing- Bonds A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined.
Characteristics of Taxable Securities Money Market Investments Highly liquid instruments which mature within one year that are issued by governments and.
Surviving the Credit Crunch with LGIP GFOA Conference May 3,
2011 SLGS Forum – May 17, 2011 Role of State and Local Government Securities and Other Activity in U.S. Treasury Cash and Debt Management.
5-1 Money Markets Money markets involve debt instruments with original maturities of one year or less Money market debt issued by high-quality (i.e., low.
1 Chapter 14 Working Capital Management and Policies McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
© 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
Treasury Auctions and the Secondary Treasury Market 4/27/ Zeno Helm: BA 543.
CHAPTER THIRTEEN FIXED-INCOME ANALYSIS. SAVINGS DEPOSITS n COMMERCIAL BANKS their financial products include various fixed-income securities, such as.
J. K. Dietrich - FBE Fall, 2005 The Money Market and Money-Market Instruments (1) Week 10 – October 26, 2005.
PRESENTED BY TARO NAKANO Treasury Auctions and the Secondary Treasury Markets.
The Federal Reserve System How does the Federal Reserve System operate? 1.
30 minutes could save you thousands FINANCIAL AID.
2013 SLGS Forum – August 8, 2013 Role of State and Local Government Securities and Other Activity in U.S. Treasury Cash and Debt Management.
Structured Transaction Overview. FDIC serves as an equity partner in its Receivership capacity for a single or multiple institution transaction. Joint.
Financial Aid 101 EVERYTHING YOU NEED TO KNOW ABOUT FINANCIAL AID.
Money and Fixed-Income Market Fed Funds Treasury Bills Rates and Yields CDs and Commercial Paper Fixed-Income Securities.
Copyright © 2000 Addison Wesley Longman Slide #9-1 Chapter Nine THE MONEY MARKETS Part IV Financial Markets.
1 PART VI Commercial Banking. 2 CHAPTER 17 Commercial Bank Operations.
CHAPTER 7 Money Markets. Copyright© 2003 John Wiley and Sons, Inc. Overview of the Money Market Short-term debt market - most under 120 days. A few high.
Sources of Finance for Small Business “Alternative Finance” Finance for SMEs Finance for SMEs.
PERS of Mississippi – Payroll and Plan Service Center Training December 2013 RETIREMENT SERVICES.
Federal Reserve Bank of San Francisco The Federal Reserve System Discount Window Credit Facilities Western Independent Bankers February 11, 2009 Rick Miller.
ALOMAR_212_4 1 Financial Market Instruments. ALOMAR_212_42 What are the securities (instruments) traded in the financial market? 1- Money Market Instruments:
“Grant Opportunities Overview” September 13, 2005.
Money and Fixed-Income Market Fed Funds Treasury Bills Rates and Yields Repos and Reverses Fixed-Income Securities.
© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to the.
© Family Economics & Financial Education – Revised November 2004 – Saving Unit – Managing Your Cash Funded by a grant from Take Charge America, Inc. to.
Outline o What they are o How they work o Who uses them o History ?
Treasury’s Borrowings Program Non-Credit Reform Program Stephanie Blair Accountant, Federal Borrowings Branch April 12, 2007.
CHAPTER 6 Money Markets. Chapter Objectives n Provide a background on money market securities n Explain how institutional investors use money markets.
All Rights ReservedDr David P Echevarria1 CHAPTER 6 MONEY MARKETS.
MONEY MARKETS 1. 1.Money market securities are debt securities with a maturity of one year or less. 2.Issued in the primary market through a telecommunications.
Grant Writing 101 Joan Wasserman, DrPH, RN (Branch Chief) U.S. Department of Health and Human Services Health Resources and Services Administration Bureau.
Office of Debt Management Overview of Treasury’s Office of Debt Management.
An understanding..  It is a market where money or its equivalent can be traded.  Money is synonym of liquidity.  It consists of financial institutions.
MONETARY POLICY INSTRUMENTS IN THE REPUBLIC OF CROATIA Monetary policy.
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Financial Management and Institutions.
Money Markets Introduction to Money Markets. Agenda In this session, you will learn about: Features of the Money Market Functions of the Money Market.
30 minutes could save you thousands FINANCIAL AID.
CASH ACCOUNTING AND REPORTING DIRECTORATE OVERVIEW.
SBA 504 Loan Program Long Term Fixed Asset Financing For Small Businesses.
082SIS52 Ryu Soo-hyun. Money Market  Money Market - Subsection of fixed income market - financial market for short-term borrowing & lending - provides.
Treasury Markets. Need for Treasury Market No return from holding excess reserves for a bank. Treasury investments yield returns for the holding period.
Interest Rates Chapter 4. Interest Rate Defines the amount of money a borrower promises to pay a lender. –Mortgage rates, deposit rates, prime borrowing.
 Introduction to Chit Fund  How chit fund works  Chit fund software's  Benefits of chit funds  Useful websites  Summary.
Preparing for ONE BIG Change: FASB Updates Nonprofit Reporting
An introduction to financial institutions, investments & Management
Virginia Small Business Financing Authority
© 2014 Cengage Learning. All Rights Reserved.
CHAPTER 6 MONEY MARKETS All Rights Reserved Dr David P Echevarria.
Personal Savings and Investment
Chapter 9 - Monetary Policy Tools
Financial Management and Institutions
Financial Market Theory
The Money Market – By Prof. Simply Simple
Financial Market Theory
Excess Liquidity Management Treasury of Georgia
Same Day ACH Corporate Considerations and Opportunities
Office of Student Financial Assistance and Scholarships
Graduate Student Orientation
Presentation transcript:

Treasury Tax & Loan Investment Program Term Investment Option (TIO) Program Overview Updated September 2009

2 TT&L Investment Program Introduction TT&L Organizational Stakeholders Department of the Treasury / Fiscal Service  Office of the Fiscal Assistant Secretary ( OFAS )  Financial Management Service ( FMS )  Bureau of the Public Debt ( BPD ) Federal Reserve System  Federal Reserve Bank of St. Louis  Federal Reserve Bank of New York TT&L Depositary Institutions

3 TT&L Investment Program Overview  Treasury has funds based on: Cyclical factors (strong vs. weak economy) Seasonal factors (peak tax periods) Monthly cash flow (middle through end of month) Legislative Factors (debt ceiling)  Investment Options Direct Investment Dynamic Investment Special Direct Investment Term Investment Option (TIO) Reverse Repurchase Agreement (REPO)

4 Term Investment Option (TIO) Overview  Treasury Objectives Provide tax payers with a greater rate of return on funds invested Increase investment capacity in the TT&L program  Participant Benefits Greater certainty of funding Enhanced flexibility  Pilot Program - April 2002  Permanent Program Inception - October 2003

5 Term Investment Option (TIO) Overview  TIO Participants Participants must be TT&L depositaries in sound financial condition Money center banks, regional banks, & credit unions Currently 65 participants (September 2009)

6 Term Investment Option (TIO) Overview  General Overview Excess funds offered for a fixed term Funds awarded through a competitive bidding auction process Bids submitted and accepted via telephone

7 Term Investment Option (TIO) Process  Update Notification General intent notice sent to participants (via ) one day prior to official announcement  Announcement Day Offering amount, length of term, acceptable collateral  Auction Day Participants place bids by calling prior to cutoff time (usually 11:00am ET) Results announced within 30 minutes

8 Term Investment Option (TIO) Process  Investment Day Collateral pledged by designated time (12:00pm ET) Funds are settled into awarded participant’s TIO and Reserve account (by 2:00pm ET)  Maturity Day Principal and interest are collected from participants Collateral is available after funds are collected

9 Term Investment Option Sources of Information  Historical Results For announcement information, auction results and an historical summary of TIO activity, visit the Treasury’s FMS Website.  notification sign-up available.