Classes of Assets

US Treasury Bills & Notes (T Bills)

bills mature 91-360 days. Notes mature 1-5 years. Almost no default risk. (Money Market Instrument) 

Federal Agency Issues

Yield more than t-bills slightly with similar maturity (Money Market Instrument) 

Certificates of deposit

Issued by commercial banks & has fixed maturity (90 days - 1 year). (Money Market Instrument) 

Commercial Paper

Typically unsecured short term note of large corporation. (Money Market Instrument) 

Money Market Mutual Fund

Invest in MM instruments. Allow pensions to remain liquid. (Money Market Instrument) 

Mortgage Bond

Corporation pledges real assets as security for bond. (Corporate Bonds)

Debenture

Long term bond not secured by any property not otherwise pledged. (Corporate Bonds)

Call Provision

Ability of issuing corporation to call bond for redemption prior to maturity date. (Corporate Bonds)

Government Bonds

Yield is lower than corporate bonds, but government bonds have nearly no default risk

Blue Chip Stocks

Issued by major companies with long & unbroken records of earnings & dividend payments. (common stocks)

Growth Stocks

Companies growing faster than general economy. Higher risk and higher return. Pay small dividends. (common stocks)

Income Stocks

Pay higher than average dividend returns. (common stocks)

Cyclical Stocks

Issued by companies who’s earnings fluctuate/business fluctuate. (common stocks)

Defensive Stocks

Recession resistant companies. (common stocks)

Interest Sensitive Stocks

Prices drop when interest rates rise, and vice versa. (common stocks)