The City of Moraine will minimize credit risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by:
• Limiting investments to the types of securities listed in Section 151.09 of this investment policy.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisors with which the City of Moraine will do business in accordance with Section 151.07.
• Diversifying the investment portfolio so that the impact of potential losses from any one individual issuer will be minimized.