1.  Bank Loans – The Manager should assess whether it has the appropriate systems and personnel to manage the extended settlement cycles and unique features of these products.

1.  In addition, legal advice from appropriately skilled internal or external counsel is often needed to manage the documentation around these transactions, particularly in the distressed arena.

2.  Mortgaged Backed Securities/CMOs – The Manager should assess whether it has appropriate systems and personnel to manage the unique features of these products, such as processing monthly paydowns and understanding payment waterfalls.

2.  No applicable guidance.

3.  Structured Credit Trading – The Manager should assess whether it has the appropriate systems and personnel necessary to manage the unique features of these products, such as the financing component, waterfall structures and correlations.

3.  No applicable guidance.

4.  Private Transactions – The Manager should assess whether it has appropriate resources such as internal and external legal, tax and structuring expertise that is adequate to support these transactions.

4.  In addition, custodial arrangements may be needed to provide for appropriate safeguarding of investment positions of this type. There should be periodic confirmation with counterparties of open positions.

5.  Transactions in Foreign Markets – These types of transactions require an understanding by personnel or service providers of local regulatory, market and tax infrastructure and settlement conventions.

5.  No applicable guidance.