麻豆社

Equity risk: Equities (also known as shares) can lose value rapidly and typically involve higher risks than bonds. Interest rate risk: the value of fixed rate bonds is sensitive to changes in interest rates. Counterparty risk: counterparties on trades may default or not comply with contractual obligations resulting in loss. Exchange rate risk: the value of investments may be impacted by changes in the exchange rates of currencies. Bond risk: Bonds (also known as fixed income securities) are impacted by Credit risk and are sensitive to changes in interest rates and expectations of future inflation. Bonds that produce a higher level of income usually have a greater risk of default. Credit risk: A bond or security could lose value if the issuer's financial health weakens. This risk is greater for bonds below investment grade (also known as high yield). Derivatives risk: derivatives can be highly sensitive to changes in the value of the asset on which they are based which can increase the size of losses and gains. Liquidity risk: securities may become more difficult to sell or sell at a desired price during difficult market conditions.Emerging market risk: investments in emerging markets can be at greater risk of loss than in developed markets. Leverage risk: leverage arising from entering into derivatives contracts has the effect of magnifying profits and losses.