GENERAL RISK INFORMATION

Every investment comes with a certain degree of risk. The terms and conditions of each financial instrument are exclusively according to the official prospectus (if applicable) or term sheet (if applicable). Before deciding on an investment, read the risk warnings in the legal documents carefully and/or consult a trusted financial expert in case of doubt.

Please note that historical or projected performance information is not a reliable indicator for future earnings or losses. No investment advice: The mentioned explanations are neither investment advice nor a recommendation to buy or sell any financial instruments. The list of risks is not exhaustive.

POTENTIAL LOSS

A fixed-income security may trade below its actual face value prior to maturity. You could face a loss if the issuer – i.e. the borrower – fails to meet its payment obligations.

INTEREST RATE RISK

Interest rates can affect the value of a fixed-income security, causing it to decline. You bear this risk as a bond investor.

ISSUER AND CREDIT RISK

As an investor, you bear the credit risk associated with the issuer of a fixed-income security. Credit risk refers to the danger that the debtor may fail to make its payments.

GUARANTOR RISK

A guarantor promises to pay all or part of the bond face value if the issuer declares bankruptcy. As a bond investor, you bear the risk that the guarantor will fail to meet this obligation.

LIQUIDITY RISK

You can only sell bonds prior to maturity if you find a willing buyer. As a result, you bear the risk that you may have to hold the bond to maturity or sell it at a loss prior to maturity.

FOREIGN EXCHANGE RISK

Fluctuating exchange rates can affect the value of a fixed-income security denominated in a foreign currency. This risk falls to the investor.

CONCENTRATION RISK

If you buy a lot of bonds from one issuer, you could experience large losses if the issuer files for bankruptcy. You can avoid this risk through diversification.