California Debt and Investment Advisory Commission.ppt

* San Francisco Los Angeles San Diego New York Chicago Phoenix Richmond Annapolis Albany Presentation to Short-term and Interim Financing Strategies January 12, 2011 * Presentation Overview Overview of Short-Term Products Market Update Strategies for Issuers of Short-Term Products in 2011 * Short-Term Products Notes with a Fixed Term Tax Revenue Anticipation Notes (TRANS) Bond Anticipation Notes (BANS) Grant Anticipation Notes (GANS) Tax Anticipation Notes (TANS) Revenue Anticipation Notes (RANS) Remarketed Securities Variable Rate Demand Notes (VDRNS) Commercial Paper (CP) Hybrid/Alternative Structures Indexed Bonds Multi-Modal Structure * Notes with a Fixed Term Tax Revenue Anticipation Notes: Notes issued in anticipation of receiving future tax receipts and revenues. Bond Anticipation Notes: Notes issued for capital projects. Redeemed with proceeds from the issuance of long-term bonds. Grant Anticipation Notes: Notes issued on the expectation of receiving grant moneys, usually from the federal government. The notes are payable from the grant funds, when received. Tax Anticipation Notes: Notes issued in anticipation of receiving future tax receipts at a later date. Revenue Anticipation Notes: Notes issued in anticipation of receiving revenues at a future date. * Remarketed Securities Variable Rate Demand Notes: Floating rate obligations that have a nominal long-term maturity but have a coupon rate that is reset periodically. Commercial Paper: Short-term, unsecured promissory notes, usually back by a line of credit with a bank, that mature within 270 days. LOC Bank Par Amount (Millions) Number of Issues JP Morgan Chase $1,981.3 28 Bank of America 1,550.1 24 Wells Fargo Bank 561.2 17 TD Bank 431.6 4 Citibank 365.0 5 PNC Bank 287.1 9 Union Bank 278.1 5 Barclays Bank 210.0 2 U.S. Bank 207.1 5 RBS Citizens 193.1 2 Top 10 Letter of Credit Providers 2010 LOC Bank Par Amount (Millions) Number of Issues JP Morgan Chase $3,58