CFO Focus: The role of par SBA floaters in managing market risk
These investments are good tools for managing both strategic and liquidity risk.
As stated in section 203 of the March 1990 Investment Securities Comptroller’s Handbook, an investment account should contain some securities that may be quickly converted into cash by immediate sale or by bonds maturing.
The basic objectives of a sound investment policy are the same for all financial institutions, but the emphasis placed on each will vary according to the individual institution’s needs. The basic objectives include:
- Minimizing risks
- Generating a favorable return on investments without undue compromise of the other objectives
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