CalPERS

Investment & Risk Management Glossary

This Glossary identifies, defines, and clarifies the meaning of investment terms used by CalPERS in our investment policies. The purpose of the Glossary is to establish a uniform vocabulary of terms for users of these policies.

Choose from the letters below to find a specific Investment & Risk Management Investment Policy term or phrase. You'll also find information about the related policies and asset classes for each term.

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I


Incubation - Funding a new developmental investment process to gain experience and insight into actual, achievable results.

Related Policy


Initial Margin - The amount of collateral that must be delivered relative to the market value of the security loaned.

Related Policy


Inverse Floaters - A derivative instrument with a coupon rate, which cannot go below zero, that moves inversely with an index rate like London Interbank Offer Rate or 11th District Cost of Funds Index, usually with a leverage factor. The higher the leverage factor, the greater the price sensitivity.

Related Policy


Investment Grade - A minimum credit rating of Baa3 by Moody's Investor Service or BBB- for Standard & Poor's Corporation, and BBB- by Fitch. Investment grade ratings apply to issuers whose financial risk is relatively low and the probability of future payment relatively high.

Related Policy


Investment Pool Consultants - An individual or organization who are contractually retained or have been appointed to a pool by CalPERS to provide investment advice but who do not exercise investment discretion.

Related Policy


Irrevocable - A binding and irreversible commitment.

Related Policy


Issuer - A state or local unit of government that borrows money through the sale of bonds and/or notes.

Related Policy