From: Adam Goldstein [WA]

    Sent: Fri May 03 08:02:54 2019

    To: Newcomb, Kellee J.

    Subject: RE: [EXTERNAL] FW: Information for the Trustees on the selling of the small GNMA positons

    Importance: Normal

    Attachments: image001.png

     
    I am ok moving forward with this. If Larry, as co-chair, is also, can we simply move ahead? Or can we send it to the Trustees for approval? Basically, I am fine moving forward with the simplest manner possible.
      
      
     
    Adam Goldstein
     
    c: 360.318.3384
      
     KNewcomb@everettsd.org 
    From:Newcomb, Kellee J. < >
      
    Sent:Friday, May 3, 2019 7:21 AM
     AGoldstein@WashingtonEA.org
    To:Adam Goldstein [WA] < > 
     
    Subject:[EXTERNAL] FW: Information for the Trustees on the selling of the small GNMA positons 
      
    CAUTION: This email originated from outside of the organization. Do not reply, click links, or open attachments unless you recognize the sender and know the content is safe. 
      
     
    Adam,
      
    Below is information from Jayson Davidson. I believe he would like a decision from the Trustees sooner than later. How would you 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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