By: Libi Uremovic | Original Article at patch.com
California Debt and Investment Advisory Commission
From State Treasurer’s Office: http://www.treasurer.ca.gov/cdiac/seminars/2014/20140312/day1/3a.pdf
Part 1 – Public Investment Planning: Codes & Legal Investments – Current and Future
Mortgage Pass-Through or Asset Backed Securities
(o) Any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum of five years’ maturity.
Securities eligible for investment under this subdivision shall be issued by an issuer having an “a” or higher rating for the issuer’s debt as provided by a nationally recognized rating service and rated in a rating category of “aa” or its equivalent or better by a nationally recognized rating service.
Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency’s surplus money that may be invested pursuant to this section.