; (II) have 100 percent of its loan assets issued by companies; (III) have no assets that are asset-backed securities or derivatives, except that this limitation shall not prohibit a qualified collateralized loan obligation from acquiring a loan participation or any interest related to or in a letter of credit, or entering into derivative transactions to hedge interest rate or currency rate mismatches; (IV) not purchase assets in default, margin stock, or equity convertible securities; (V) acquire only loans held or acquired by three or more investors or lenders unaffiliated with the manager; (VI) hold only loans to borrowers whose financial statements are subject to an annual audit from an independent, accredited accounting firm; (VII) have no more than 60 percent of its assets comprised of covenant lite loans, except that each asset shall require the disclosure of unaudited financial statements quarterly within 60 days of the end of the quarter and audited financial statements annually within 120 days of the end of the fiscal year