Losses caused by price volatility is not possible.) Lower-quality bonds can be more volatileĪnd have greater risk of default than higher-quality bonds.įoreign securities are subject to interest rate, currency exchange rate, economic, and (Unlike individualīonds, most bond funds do not have a maturity date, so holding them until maturity to avoid Inflation, credit, and default risks for both issuers and counterparties. Usually more pronounced for longer-term securities.) Fixed income securities also carry (As interest rates rise, bond prices usually fall, and vice versa. In general the bond market is volatile, and fixed income securities carry interest rate Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.(Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.) This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation, credit, and default risks for both issuers and counterparties.
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