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Presentation - #21
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Presentation - #21
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2/10/2021 5:01:58 PM
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City Clerk
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2/2/2021
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Monte Carlo Simulation•Monte Carlo Simulation compares ending portfolio balance: Pension Bonds vs CALPERS UAL payments over 25 years.•Calculates results based on running 10,000 different (random) scenarios•CalPERS Return over 25‐year period•Expected Return = 7.0% (Standard Deviation = 10.6%)Probability of SuccessResults change with each iteration and Bond Structure•87% with 90% Refinancing•84% with 50% Refinancing$0$500$1,000$1,500$2,000$2,500$3,000$3,50012345678910111213141516171819202122232425Monte Carlo SimulationEnding Portfolio Balance
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