For some reason, this reads like an article that should be talking about something that happened in the past. It’s all about how the New York Lottery is abandoning Treasuries in favour of high-risk investments, like stocks, hedge funds and real estate. But you’d think it would be a hindsight article, like: For years the New York Lottery favoured conservative investments, but in 2006 it decided to goose returns by investing in mortgage-backed securities... And then of course the story would have a predictable end, where it all blew up.
Anyway, here’s what they’re thinking:
If the agency were to double its annual return to 8 per cent as it projects, the prize would be $37 million more for state coffers as New York grapples with a record $13 billion budget deficit next year. Losses might reduce proceeds that fund education, said Gordon Medenica, the lottery’s director.
New York would be the first state lottery among the 20 largest to shift to pension fund-style investments from Treasuries, according to annual reports. Treasury bond yields have fallen to near record lows as investors seek safety amid the global credit crunch.
Hey, they’re bucking the trend at the right time.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.