[Local-Gov-News] Message from Treasury regarding Federal Debt Ceiling

[COY Brady T]

As local government participants in the Oregon Short Term Fund are aware, the Federal Government is expected to reach its maximum allowed borrowing capacity of $14.3 trillion on or around August 2nd.  The Oregon Short-Term fund is monitoring the situation and continues to manage the fund adhering to the OSTF stated objectives, in priority order, of Principal Protection, Liquidity, and Yield.  As a reminder, greater than 50% of the OSTF must mature or reset within 93 days at all times.  In addition, the fund maintains a diversified exposure across several types of issuers including highly rated corporations.  While OSTF portfolio managers are unable to predict an outcome to the debt ceiling negotiations in Washington DC, the OSTF is cognizant of the potential need to provide liquidity to local governments and is prepared should the need arise.





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