State Street Portfolio Manager Speaks to CFA Society of Milwaukee

Fixed income manager describes creation, impact of TALF, PPIP government programs Reported by Brian Finnie, AIM Program student.

Brian Kinney, Vice President of State Street Global Advisors (SSgA), provided his insights into the various asset purchase programs created by the U.S. government in response to the tight credit and lending markets at the May 27th Chartered Financial Analyst (CFA) Society of Milwaukee luncheon held at the Milwaukee Athletic Club. Regarding the Term Asset-Backed Loan Facility (TALF) program that was restructured in March, Mr. Kinney noted, “It has been successful, at least the early indications are, on both a (interest rate yield) spread level and also on a broader level of acceptance from the issuers and their ability to access the markets.” Kinney also spoke on the White House Public Private-Investment Program (PPIP).

Mr. Kinney, CFA, manages aggregate and mortgage-backed securities (MBS) bond portfolios for the Fixed Income Department at SSgA and has managed fixed income portfolios since joining the firm in 2003. The topic of the luncheon, which was attended by over 30 CFAs, was the government’s TALF and the Public Private Investment Program (PPIP).

“Part of TALF’s slow start had to do with the skepticism of the markets. TALF is quite onerous in terms of complying with the considerable regulatory requirements of the program,” Mr. Kinney said. “Now there is a wider array of investors that understand the way the program works. This has allowed for some flexibility in the money management world and broader investment community to understand how to use TALF in ways that meet investment objectives in ways that they had not thought of in the past.”

The CFA Society of Milwaukee meetings provide an opportunity for investment professionals, students, and interested parties to engage in a timely discussion of relevant events in the financial markets.

The CFA Society of Milwaukee promotes ethical and professional standards within the investment industry, encourages professional development through the CFA® Program, and facilitates the open exchange of information and opinions. The Milwaukee Society is a member of the CFA Institute, a global association of investment professionals promoting the highest ethical standards along with offering educational opportunities.