Glendale’s investment portfolio ended the second fiscal quarter at $396 million, down $2 million from the end of the previous quarter, according to the latest report.
The portfolio’s slip is driven by historically low interest rates, which have factored heavily into the investment portfolio’s downward slide.
“It is remarkable that after three years of historically low interest rates, rates have yet to improve, and it’s even more remarkable that these rates continue to fall,” City Treasurer Ron Borucki told the City Council on Tuesday.
The Federal Reserve is keeping interest rates low to jumpstart the housing sector, Borucki said. Low interest rates mean low mortgage rates, which could encourage home buying.