Advisor tells Sandoval County committee falling short‑term rates hit liquidity yields; portfolio anchored in Treasuries
January 20, 2026 | Sandoval County, New Mexico
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Government Portfolio Advisors president Diane Woodring briefed the Sandoval County Investment Committee on market conditions and portfolio positioning, telling members that short‑term benchmark yields and bank deposit rates have declined and that this dynamic has reduced the county’s overall portfolio yield.
Woodring said the three‑month Treasury bill — a liquidity benchmark — has trended materially lower and that market and Fed expectations point to lower short‑term rates through 2027. As a result, bank deposit yields are trading roughly 1 percentage point below the three‑month bill and liquidity balances have been most affected.
GPA described the county’s portfolio structure as a core component targeted to a 0–5 year maturity band (average weighted maturity near two years) that seeks modest outperformance while limiting risk. "We're trying to keep the the rates from coming down too much by keeping that main core fund anchored as much as we can," Woodring said, describing a defensive weighting toward Treasuries when agency spreads do not provide attractive relative value.
Woodring cited portfolio figures: a core account approximately $55,000,000 with an indicated yield of about 3.73% and an unrealized gain of $345,000; liquidity balances near $45,000,000 earning about 2.82% for the bank portion and ~3.60% at the LGIP. She said the portfolio’s overall earnings yield declined from 3.95% to 3.32% this quarter, mainly because of falling bank rates and the portfolio’s deposit weighting.
Woodring also noted a promissory note in the economic and development fund that reduced holdings (from $5,000,000 at Dec. 2024 to $3,100,000 in 2025) and said that county staff are tracking that note internally. Commissioner Catherine Brook asked about volatility and how GPA is positioning the portfolio; Woodring described a benchmark-driven, conservative approach that emphasizes liquidity management and limited credit exposure.
No investment decisions or policy changes were made at the meeting; GPA’s presentation was for committee review and accountability.
Woodring said the three‑month Treasury bill — a liquidity benchmark — has trended materially lower and that market and Fed expectations point to lower short‑term rates through 2027. As a result, bank deposit yields are trading roughly 1 percentage point below the three‑month bill and liquidity balances have been most affected.
GPA described the county’s portfolio structure as a core component targeted to a 0–5 year maturity band (average weighted maturity near two years) that seeks modest outperformance while limiting risk. "We're trying to keep the the rates from coming down too much by keeping that main core fund anchored as much as we can," Woodring said, describing a defensive weighting toward Treasuries when agency spreads do not provide attractive relative value.
Woodring cited portfolio figures: a core account approximately $55,000,000 with an indicated yield of about 3.73% and an unrealized gain of $345,000; liquidity balances near $45,000,000 earning about 2.82% for the bank portion and ~3.60% at the LGIP. She said the portfolio’s overall earnings yield declined from 3.95% to 3.32% this quarter, mainly because of falling bank rates and the portfolio’s deposit weighting.
Woodring also noted a promissory note in the economic and development fund that reduced holdings (from $5,000,000 at Dec. 2024 to $3,100,000 in 2025) and said that county staff are tracking that note internally. Commissioner Catherine Brook asked about volatility and how GPA is positioning the portfolio; Woodring described a benchmark-driven, conservative approach that emphasizes liquidity management and limited credit exposure.
No investment decisions or policy changes were made at the meeting; GPA’s presentation was for committee review and accountability.
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