Reinvestment risk. If investors hold a callable bond, when the interest rate goes down, the issuer may redeem the bond before maturity. If this happens investors have to re-invest the proceeds, the yields on other bonds in the market will generally be less favorable.
Reinvestment risk. The risk of loss from reinvesting principal or income at a lower interest rate. Suppose you buy a bond paying 5%. Reinvestment risk will affect you if interest rates drop and you have to reinvest the regular interest payments at 4%. Reinvestment risk will also apply if the bond matures and you have to reinvest the principal at less than 5%. Reinvestment risk will not apply if you intend to spend the regular interest payments, or the principal, at maturity.
Reinvestment risk. 4.2.5.1 For callable bonds, if the issuer redeems the bonds before the maturity date, and you reinvest the recovered principal in other bonds with similar risk feature, the return may be lower than the original bond investment.
Reinvestment risk. If your CD is paid prior to maturity as a result of the issuing Insured Institution’s insolvency or a voluntary early withdrawal (see Section 3(h) above, “Additions and Early Withdrawal”), you may not be able to reinvest your funds at the same interest rate that you received on the original CD. Neither we nor Promontory is responsible to you for any losses you may incur as a result of a lower interest rate on an investment replacing your CD.
Reinvestment risk. This risk arises from the uncertainty in the rate at which cash flows from an investment may be reinvested. This is because the bond will pay coupons, which will have to be reinvested. The rate at which the coupons will be reinvested will depend upon prevailing market rates at the time the coupons are received.
Reinvestment risk. If you cannot reinvest the future interest incomes generated from a bond at the prevailing interest rate when the bond was initially purchased, the rate of the return (yield-to-maturity) of the bond will be affected.
Reinvestment risk. This is the risk associated with the possibility of having lower returns or earnings when maturing funds or the interest earnings of funds are reinvested. Investors in UITFs who redeem and realize their gains run the risk of reinvesting their funds in an alternative investment outlet with lower yields. Similarly, the Fund Manager is faced with the risk of not being able to find good or better alternative investment outlets as some of the securities in the fund mature. FOREIGN EXCHANGE RISK. This is the possibility for an investor to experience losses due to fluctuations in foreign exchange rates. The exchange rates depend upon a variety of global and local factors, e.g., interest rates, economic performance, and political developments. It is the risk of the UITF to currency fluctuations when the value of investments in securities denominated in currencies other than the base currency of the UITF depreciates. Conversely, it is the risk of the UITF to lose value when the base currency of the UITF appreciates. The net asset value of a peso-denominated UITF invested in foreign currency-denominated securities may decrease to incur loss when the peso appreciates. COUNTRY RISK. This is the possibility for an investor to experience losses arising from investments in securities issued by/ in foreign countries due to the political, economic and social structures of such countries. There are risks in foreign investments due to the possible internal and external conflicts, currency devaluations, foreign ownership limitations and tax increases of the foreign country involved which are difficult to predict but must be taken into account in making such investments. REGULATORY RISK. Changes in laws and regulations that could adversely affect the value and return of the investment. OTHER RISK. There may be other unforeseen risks inherent in investments as a result of a variety of changes in the market and the economy, including but not limited to changes in interest rates, inflation (actual and outlook) and a general decline in the market as a whole. Additionally, certain characteristics of the change may affect the sensitivity of the price of the Investment to these and other macro- economic changes. There may be other unforeseen risks inherent in investments that may be caused by other factors, including global events, political, legal, regulatory, or general economic changes, which may enhance the risks as stated above. This Risk Disclosure Statement is an integral part...
Reinvestment risk. If the Client applies for early redemption or the issuer exercises its right of early redemption, and reinvests the proceeds from the early redemption, the investment return may be lower than the yield of this product.
Reinvestment risk. If the issuing institution exercises the right to redeem this product early, The Client will face reinvestment risk.
