Call Risk. The risk that a bond/structured note is called prior to maturity and the proceeds are invested at lower potential returns.
Call Risk. If you hold a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens and you have to re-invest the proceeds, the yields on other bonds in the market will generally be less favourable.
Call Risk. An Issuer is likely to call its CDs at a time when interest rates available on alternative investments are lower than the rate you are being paid on such CD. If called, the CD will be redeemed at the call price, and you may not realize the same return that you would have had if the CD had not been called. If you choose to reinvest the proceeds of the call, you might be required to invest in lower yielding investments, and subject to reinvestment risk, based on the current market rates at that time. Conversely, a call by the issuing depository institution is least likely to occur at a time when interest rates available on alternative investments are higher than the rate you are being paid on a CD. Callable CDs may also be called at a price which is less than the price you paid for the CD, if you purchased the CD in the secondary market at a premium over the par amount (or accreted value in the case of zero coupon CDs). The call price of a callable CD may limit the appreciation of the secondary market price for the CD above par value. Reinvestment Rate Risk - Reinvestment risk is the risk that interest rates may be lower at the time of maturity or call than interest rates at the time of purchase. As a result, alternative investments at the time of maturity or call may not yield a rate of return similar to the time of the original CD purchase. Reinvestment risk may expose a callable CD owner to a lower yielding investment due to the market rates that follow a call. CPI Expectations - Should actual changes in CPI fall short of expectations, the inflation-linked CD may underperform traditional CDs. A decrease in the CPI due to deflation will reduce the total amount of interest paid during the holding period.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Bond Fund may “call” or repay the security before its stated maturity, and the Bond Fund may have to reinvest the proceeds at lower interest rates, which would result in a decline in the Bond Fund’s income, or in securities with greater risks or with other less favorable features. ● Concentration Risk. The Bond Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Bond Fund’s investments more than the market as a whole, to the extent that the Bond Fund’s investments are concentrated in the securities of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector or asset class.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Emerging Bond Fund may “call” or repay the security before its stated maturity, and the Emerging Bond Fund may have to reinvest the proceeds in securities with greater risks or other less favorable features or in securities with lower yields, which would result in a decline in the Emerging Bond Fund’s income. ● Concentration Risk. The Emerging Bond Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Emerging Bond Fund more than the market as a whole, to the extent that the Emerging Bond Fund’s investments are concentrated in the securities of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, project types, group of project types, sector or asset class. ● Credit Risk. Debt issuers and other counterparties may be unable or unwilling to make timely interest and/or principal payments when due or otherwise honor their obligations. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on the issuer’s financial condition and on the terms of the securities. ● Custody Risk. Less developed markets are more likely to experience problems with the clearing and settling of trades, as well as the holding of securities by local banks, agents and depositories.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds in securities with lower yields, which would result in a decline in the Fund’s income, or in securities with greater risks or with other less favorable features.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds in securities with lower yields, which would result in a decline in the Fund’s income, or in securities with greater risks or with other less favorable features. Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector or asset class. Credit Risk. Debt issuers and other counterparties may be unable or unwilling to make timely interest and/or principal payments when due or otherwise honor their obligations. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also adversely affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on an issuer’s or counterparty’s financial condition and on the terms of an obligation.
Call Risk. During periods of falling interest rates, an issuer of a callable bond held by the Fund may “call” or repay the security before its stated maturity, and the Fund may have to reinvest the proceeds in securities with lower yields, which would result in a decline in the Fund’s income, or in securities with greater risks or with other less favorable features. Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund’s investments more than the market as a whole, to the extent that the Fund’s investments are concentrated in the securities and/or other assets of a particular issuer or issuers, country, group of countries, region, market, industry, group of industries, sector, market segment or asset class. Credit Risk. Debt issuers and other counterparties may be unable or unwilling to make timely interest and/or principal payments when due or otherwise honor their obligations. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also adversely affect the value of the Fund’s investment in that issuer. The degree of credit risk depends on an issuer’s or counterparty’s financial condition and on the terms of an obligation. Commodity Regulatory Risk. The Fund is deemed a commodity pool and BFA is considered a commodity pool operator (“CPO”) with respect to the Fund under the CEA. BFA is therefore subject to regulation by the SEC and the CFTC. BFA is also subject to regulation by the National Futures Association (“NFA”). The regulatory requirements governing the use of commodity futures, options on commodity futures, certain swaps or certain other investments could change at any time Commodity Risk. The Fund invests in companies that are susceptible to fluctuations in certain commodity markets and to price changes due to trade relations. Any negative changes in commodity markets that may be due to changes in supply and demand for commodities, market events, war, regulatory developments, other catastrophic events, or other factors that the Fund cannot control could have an adverse impact on those companies. Currency Hedging Risk. In seeking to track the “hedging” component of the Underlying Index, the Fund invests in currency forward contracts (which may include both physically-settled forward contracts and NDFs) designed to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio. While hedging can reduce o...
Call Risk. If the issuing institution exercises the right to redeem this product early, it will shorten the expected investment duration.
Call Risk. In case of bonds, if interest rates drop low enough, the bond's issuer may choose to repay its callable bonds and issue new bonds at lower interest rates. If this happens, the bondholder's interest payments cease and they receive their principal early.
