From: Kathi McKiernan

    Sent: Tue May 07 13:42:53 2019

    To: Newcomb, Kellee J.

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons

    Importance: Normal

    Attachments: image002.png; image003.png

     
     
    Sure – his cell number is (503) 360-3510.
      
     
    Kathi McKiernan (Welch)
     
    Operations Manager
       
    HYASGROUP
     
    108 NW 9th Avenue, Suite 203
     
    Portland, OR 97209
     
    971.634.1509
    kmckiernan@hyasgroup.com  
     
    www.hyasgroup.com
      
      
     KNewcomb@everettsd.org 
    From:Newcomb, Kellee J. < >
      
    Sent:Tuesday, May 7, 2019 1:41 PM
     kmckiernan@hyasgroup.com 
    To:Kathi McKiernan < >
     
    Subject:RE: Information for the Trustees on the selling of the small GNMA positons 
      
     
    Hi Kathi,
      
    It might be easier for the Trustees to call him when they are ready if that is ok with Jayson. 
      
     
    Thank you!
      
      
      

     
      

     
      

     
    Kellee Newcomb 

    Executive Assistant 

    Teaching & Learning – South Region 

    knewcomb@everettsd.org  

    425-385-4023   |     425-385-4012   Fax 

     
    alt

     
      

     
      

       
     
      

      

    From: Kathi McKiernan < kmckiernan@hyasgroup.com

    Sent: Tuesday, May 7, 2019 1:39 PM 

    To: Newcomb, Kellee J. < KNewcomb@everettsd.org

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons 

      

    Hi Kellee – 

      

    I just spoke with Jayson and he is available to participate in the May 15 th meeting via phone conference (we won’t be doing the web conference for this one).   Is there a phone number available that I should have him call or would you prefer to call him when you are ready? 

      

    Thank you! 

      

    Kathi McKiernan (Welch) 

    Operations Manager 

    HYAS  GROUP 

    108 NW 9th Avenue, Suite 203 

    Portland, OR 97209 

    971.634.1509 

    kmckiernan@hyasgroup.com 

    www.hyasgroup.com 

      

      

    From: Jayson Davidson

    Sent: Tuesday, May 7, 2019 1:24 PM 

    To: Newcomb, Kellee J. < KNewcomb@everettsd.org

    Cc: Kathi McKiernan < kmckiernan@hyasgroup.com

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons 

      

    Sure, if I’m not available we will make sure to have someone on hand to call in. 

      

    From: Newcomb, Kellee J. < KNewcomb@everettsd.org

    Sent: Tuesday, May 7, 2019 1:18 PM 

    To: Jayson Davidson < JDavidson@hyasgroup.com

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons 

      

    Hi Jayson, 

      

    Sorry for the delay in getting back to you. Because this decision requires Trustee approval, I believe it has to be presented to them at a meeting to comply with the open public meetings act. I will add it to the May agenda. Would you like to remote in or have a phone conversation with them during the topic? 

      

    Thank you. 

      

      
      

     
      

     
      

     
    Kellee Newcomb 

    Executive Assistant 

    Teaching & Learning – South Region 

    knewcomb@everettsd.org  

    425-385-4023   |     425-385-4012   Fax 

     
    alt

     
      

     
      

       
     
      

      

    From: Jayson Davidson < JDavidson@hyasgroup.com

    Sent: Monday, May 6, 2019 9:24 AM 

    To: Newcomb, Kellee J. < KNewcomb@everettsd.org

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons 

      

    Hi Kellee, 

      

    Did you happen to hear back from Adam on this.   We’d like to give instructions to the manager.   I’d be happy to chat with him/the Trustees if needed. 

      

    From: Newcomb, Kellee J. < KNewcomb@everettsd.org

    Sent: Wednesday, May 1, 2019 8:10 AM 

    To: Jayson Davidson < JDavidson@hyasgroup.com >; Vanduren, Darla A. < DVanduren@everettsd.org

    Cc: Kathi McKiernan < kmckiernan@hyasgroup.com

    Subject: RE: Information for the Trustees on the selling of the small GNMA positons 

      

    Jayson, 

      

    Darla won’t be back until May 7. I will check with Adam to see how he would like to proceed. 

      

    Thank you. 

      

      
      

     
      

     
      

     
    Kellee Newcomb 

    Executive Assistant 

    Teaching & Learning – South Region 

    knewcomb@everettsd.org  

    425-385-4023   |     425-385-4012   Fax 

     
    alt

     
      

     
      

       
     
      

      

    From: Jayson Davidson < JDavidson@hyasgroup.com

    Sent: Wednesday, May 1, 2019 8:00 AM 

    To: Vanduren, Darla A. < DVanduren@everettsd.org >; Newcomb, Kellee J. < KNewcomb@everettsd.org

    Cc: Kathi McKiernan < kmckiernan@hyasgroup.com

    Subject: Information for the Trustees on the selling of the small GNMA positons 

      

    Hi Darla and Kellee, 

      

    Not sure how best to get this out to Trustees for a decision.   We could also raise this at next meeting, but can’t be sure bids will be there then too.   My message below: 

      

    As we discussed, we asked Becker to the small GNMA positions out for indicative bids yesterday.   The sent out four of the eight positions to the following brokers: 

      


     

      

    Only one broker, the   Bank of Oklahoma provided a bid. 

      

    The bids were as follows: 
    Original 

     
         Best 

     
    Net 

     
    Face 

     
    Security 

     
    Coupon/Maturity 

     
    Pool Number 

     
    Cusip 

     
    BVAL 

     
    Bid 

     
    Difference 

     
              45,000 

     
    GNMA 

     
    6.00% 12/15/23 

     
    476724 

     
    36209NSM5 

     
    101-29 + 

     
    99-10 

     
    $         25.03 

     
               60,000 

     
    GNMA 

     
    6.00% 8/20/28 

     
    2671 

     
    36202C6G3 

     
    109-29 

     
    99 

     
    $         52.69 

     
               63,000 

     
    GNMA 

     
    5.00% 2/20/33 

     
    3345 

     
    36202DWE7 

     
    105-8 + 

     
    99-16 + 

     
    $     116.84 

     
               40,110 

     
    GNMA 

     
    5.00% 10/20/33 

     
    3458 

     
    36202DZX2 

     
    105-21 + 

     
    102-28 

     
    $         57.25 


      

      

    As you can see, the bids were a ways off of the Bloomberg Valuation (BVAL), but keep in mind that BVAL is based upon round lots of $1,000,000.   All of these aged positions are very small, with market values ranging from $610 – $6,000. 

    When Becker factors in the net difference in potential proceeds, the difference between the BVAL and bids received ranges from $25 – 116. 

      

    Per the discussion at the last meeting, this amount may not be a substantial disparity given the small, illiquid sizes of these MBS pieces.   It may be better just to accept prices within this range in order to clean up these positions. 

      

    Please let me know if you would like me to put all of the bonds out for bids and to execute if the numbers are similar to what was initially received yesterday (we can request a couple more brokers to try to stir up a bit more interest). 

      

    Thank you, 

      

    Jayson 

      

      

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