CalSTRS Oct. 13 will consider adding a national credit enhancement program to its existing regional activities. Started five years ago, the internally managed regional program guarantees bonds issued by other entities, using the Sacramento-based California State Teachers Retirement Systems AAA rating. The institutions then split the cost savings between them. The $100 billion funds total exposure as of the end of August was $700 million. Board members will look at a national program being offered by Consortium Financial Group, a new unit of Canadian Imperial Banking Corp. CFG hopes to have $2.6 billion in credit guarantees in place by the end of the first year and $4.8 billion by the end of the second year. If the CalSTRS board approves the concept, fund officials will examine externally run programs, said Patrick Mitchell, chief investment officer.
CalSTRS Oct. 13 will consider adding a national credit enhancement...
Sponsored Content
Partner Content