Las Vegas Sun

January 19, 2018

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State earning little interest on investments

The state is earning a low return on its $1.5 billion investment and it doesn't look to get any better.

Mark Mathers, chief deputy in the state treasurer's office, said the state is realizing a return of 0.5 percent to 0.75 percent. But he told the state Board of Finance Tuesday that is better than a T-bill return.

A chart from the treasurer's office shows the yield on T-bills lower than 0.10 percent.

Mathers doesn't expect the interest rates to rise until 2015. The board of the Federal Reserve system meets Thursday, and most experts expect no change in the policy, says Mathers.

The investment by Nevada is weighted toward government securities, he said,

The report, presented to the finance board, said Treasurer Kate Marshall "maintains a conservative, moderately active investment strategy."

It shows 58.2 percent of the state's $1.5 billion in government securities and agencies. For instance, $457 million is invested with the Federal Home Loan Bank and $121.7 million is with the Federal National Mortgage Association.

It shows that 19.8 percent is in commercial notes and 9.2 percent is in commercial paper.

The board, headed by Gov. Brian Sandoval, approved the investment strategy.

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