BAS Presentations - March 2023
3/1/2023
Securities Review – May 2022 Exam
Five ‐ fold increase in Corporate bonds since the last exam (Q1 2019)
• Corporate bonds rated either subinvestment or lowest investment grade represented nearly 200% of capital. • Weak investment practices (policy, pre-purchase analysis, ongoing monitoring). • Asset Quality, Capital, and Management components were downgraded.
15
Management was Reaching for Yield since Risk Free Rates were Extremely Low
6.0%
5.0%
4.0%
3.0%
4/30/2021
Yield
1.65%
2.0%
4/30/2020
0.64%
1.0%
1m 2m 3m 6m 1y
2y
3y
5y
7y
10y
20y
30y
Maturity
16
8
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