Page 520 - Bedford-FY23-24 Budget

Diversification - Market conditions and the arbitrage regulations influence the
attractiveness of staggering the maturity of fixed rate investments for Debt Service
Reserve Funds. At no time shall the final debt service payment date of the bond issue be
exceeded in an attempt to bolster yield.

Yield - Achieving a positive spread to the applicable borrowing cost is the desired
objective. Debt Service Reserve Fund portfolio management shall operate within the
limits of the Investment Policy’s risk constraints.

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