As a finance employee in a municipality, you have been informed that a separate $85 million pension fund for the municipality’s firefighters will be carved out of the municipality’s pension fund. The newly formed Firefighter’s Pension Investment Committee is interested in investing up to $25 million of pension assets in asset-backed securities to mature in 10 years so that they can be disbursed to a fund for payment to retired firefighters.
Your task is to make a presentation of 600–800 words to the Committee explaining the different types of ABS for the Committee’s consideration. The presentation must include the following:
A discussion of at least 3 important types of ABS, including MBS
2 specific, real-world examples of asset-backed securities with appropriate maturities and how they compare to a Treasury security of the same maturity in terms of the spread over the Treasury yield
A discussion of the third risk that exists for MBS investors in addition to the credit and interest rate risks faced by all bon
ntroduction: ‘A sugary drink tax or soda tax is a tax or surcharge designed to reduce consumption of drinks with added sugar. Drinks covered under a soda tax often include carbonated soft drinks. sports drinks and energy drinks.”(1) When people look or think about New Zealand the perception is that this country we live in is a clean and green country in which has the prospects of living healthy, animals everywhere and clean air, though this isn’t exactly the case when looking at our statistics as almost one in three adults (aged 15 years and over) are obese (32%) and a further 35% of adults were overweight but not obese. For children in New Zealand one in nine children (aged 2-14 years) are obese (11%), further stating that children living in the most deprived areas were three times as likely to be obese as children living in the least deprived areas. (2) The issue we have here in New Zealand regrading obesity has caught the attention of over 70 professional medical specialists and have decided to alert the New Zealand Government in hope to create a sugar tax in which would help New Zealander’s live a healthier life. This study is led by the National Institute for Health Innovation (NIHI) at the University of Auckland. in collaboration with the University of Otago in which the researchers from (NIHI) “estimate a 20 percent tax on fizzy drinks would reduce energy consumption by 0.2percent or 20kJ a day and help avert or postpone about 67 deaths from cardiovascular disease, diabetes and diet-related cancers a year.” (2) If this sugar tax is taken into place then this is not only going to help the people living in New Zealand to get healthier but it is going to have a great effect on the children in New Zealand as its going to reduce the risk and obesity in these young kiwi’s. This sugar tax is mainly directed towards fizzy drinks. “Almost one fifth of the total sugar intake of New Zealand adults (17percent) comes from non-alcoholic beverages and younger people in particular derive a substantial proportion of their sugar intake from these drinks.” (3) Sugar is a sweet crystalline substance in which is found in various plants such as sugar cane and sugar beet, consisting of sucrose. (4) In our daily lives we tend to use sugar as a form of sweetener in certain foods and drinks. There are plenty of sugars that are naturally present in healthy foods such as our fruits and vegetables but are also present in manufactured and processed foods such as fizzy drinks, muesli bars, cereal and sauces. Sugar has no nutritional content within it and often has many calories when and if someone has too much of this substance but further health problems can occur when this substance is constantly over consumed. Some examples of these problems are obesity, diabetes and tooth decay. Here in New Zealand it’s a lot more common from some families and children to eat take out or buy the unhealthier options when it comes to food and drink due to the prices of these products being a lot cheaper than the healthier options. Due to these young children eating all of this sugar it is causing children to gain weight fast and increasing their chances of having some of these serious health problems. Therefore, having a sugar tax in New Zealand would mean that these children would become healthier and be more physically active like a child should be; >GET ANSWER