New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 16 - RULES OF THE STATE INVESTMENT COUNCIL › Subchapter 23 - GLOBAL DIVERSIFIED CREDIT INVESTMENTS › Section 17:16-23.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Bank loans" means loans that are originated by commercial
				  and/or investment banks or other lending syndicates. Bank loans are typically
				  comprised of loans to corporations and tend to be the most senior debt in the
				  corporate debt structure.
"Bridge financing" means interim financing used by entities
				  until a long-term financing option can be arranged. Bridge financing typically
				  comes in the form of a debt obligation or equity investment.
"Co-investment" means two parties (usually the limited
				  partner and the general partner of a fund) invest alongside each other. If a
				  limited partner in a fund has co-investment rights, it can invest directly in a
				  company that is also backed by a fund. The institution therefore ends up with
				  two separate stakes in the company -- one indirectly through the fund; one
				  directly in the company. Co-investment may also include multiple like-minded
				  institutional investors investing in a specific company or portfolio.
"Commingled fund" means all open-end and closed-end pooled
				  investment vehicles formed for the purpose of investing. A commingled fund may
				  be organized as a group trust, partnership, limited liability company,
				  corporation, insurance company separate account, or other multiple ownership
				  entity. An investment in a commingled fund may take the form of an investment
				  in the fund or in the trustee, general partner, or other managing member of
				  such fund.
"Common stock" means shares of stock, other than preferred
				  stock, representing ownership in a corporation or other form of legal
				  entity.
"Convertible debt issue" means a debt obligation of any
				  corporation or other form of legal entity that is convertible into the common
				  stock of the entity.
"Convertible preferred stock" means preferred stock of any
				  corporation or other form of legal entity that is convertible into the common
				  stock of the entity.
"Credit structured products" means investments whose cash
				  flow characteristics depend upon a pool of collateral, one or more securities,
				  indices, or similar strategies designed to replicate the return of a basket of
				  securities, or that have embedded forwards or options or securities where the
				  investment return is contingent on, or sensitive to, changes in the value of
				  underlying assets, indices, interest rates, or cash flows.
"Debtor-in-possession financings" means financing arranged by
				  an entity while under a bankruptcy reorganization process.
"Exchange-traded funds" means funds that invest in underlying
				  securities that track a pre-determined index or strategy, a commodity, or a
				  basket of assets, and whose shares can be traded like shares of common
				  stock.
"Funds-of-funds" means funds set up to distribute investments
				  among a selection of fund managers, who in turn invest the capital
				  directly.
"Global collateralized notes" means securities collateralized
				  by loans, receivables, claims, or any other assets.
"Global diversified credit investments" means investments in
				  opportunistic credit, global collateralized notes, bank loans, mezzanine debt,
				  credit structured products, commercial and residential mortgage-backed
				  securities, commercial and residential whole loans, and other similar
				  strategies, including equity participation.
"High yield debt" means a debt obligation with a lower credit
				  rating than investment-grade debt.
"Joint venture" means a contractual agreement joining two or
				  more parties for the purpose of executing a particular undertaking. All parties
				  agree to share in the profits and losses of the enterprise. Joint ventures are
				  usually private.
"Mezzanine debt" means subordinated debt which may include
				  embedded equity instruments.
"Mortgage-backed securities" mean asset-backed securities
				  that represent a right to receive a portion of the cash flows from mortgage
				  loans. Residential mortgage-backed securities are typically secured by
				  single-family or two- to four-family real estate. Commercial mortgage-backed
				  securities are typically secured by commercial and multi-family properties such
				  as apartment buildings, hotels, schools, retail or office properties,
				  industrial properties, and other commercial sites.
"Opportunistic credit" means primary and secondary
				  opportunities in performing, stressed, and distressed public and private
				  securities. This includes senior loans, high yield debt, debtor-in-possession
				  financings, and bridge financings, as well as post-reorganization
				  equity.
"Post-reorganization equity" means equity issued by an entity
				  as part of a bankruptcy, reorganization, or other similar restructuring.
"Preferred stock" means shares of stock which provide a
				  dividend that is paid before any dividends are paid to holders of common stock
				  and additional rights above and beyond those conferred by common stock.
"Private credit investments" means investments in
				  opportunistic credit, global collateralized notes, bank loans, mezzanine debt,
				  credit structured products, commercial and residential mortgage-backed
				  securities, commercial and residential whole loans, and other similar
				  strategies, including equity participation.
"Private placement" means a negotiated sale in which the
				  securities are sold directly to institutional or private investors, rather than
				  through a public offering registered with the U.S. Securities and Exchange
				  Commission or applicable foreign regulatory body. Private placement includes
				  the sale of securities pursuant to Section 4(2), Regulation D, Regulation S, or
				  Rule 144A under the Securities Act of 1933, as amended.
"Senior loan" means a debt financing obligation that holds
				  legal claim above other junior debt obligations. Senior loans may include
				  embedded equity instruments.
"Separate account" means an investment vehicle with a single
				  investor that is unaffiliated with its sponsor or manager.
"Whole loans" mean mortgage loans obtained through the
				  secondary mortgage market with administration of the loan(s) handled through a
				  third party. Residential whole loans are typically secured by single-family or
				  two- to four-family real estate. Commercial whole loans are typically secured
				  by commercial and multi-family properties such as apartment buildings, hotels,
				  schools, retail or office properties, industrial properties, and other
				  commercial sites.