Roland Machold, director of New Jersey's investment division, said a crisis like Orange County, Calif.'s could "absolutely not" happen with the state's $7 billion short-term cash management fund.

The division's independent oversight panel does not permit derivatives investments, whether they be options, inverse floaters, or reverse repurchase agreements, Machold said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.