Capítulo II: Consideraciones generales de los RSU en México. El impacto ambiental del proceso de
2.3 Disposición Final de los RSU
© Neev Knowledge Management – Pristine
• Interest Rate risk: refers to the effect of change in the market interest rates on the price of the bond.
The overall interest rates will change from the levels extant when the security is sold, causing an opportunity cost
• Yield Curve risk: results from the change in the yield curve and its impact on the bond
• Call Risk: is the risk that the Issuer will exercise the call option on a callable bond if the interest rates fall
• Prepayment risk: is the risk to prepayment of the principal amount before its due date
• Reinvestment risk: is the risk that the cash flows from the securities will be reinvested at a lower rate
• Credit risk: is the risk that the borrower will default on the installment payments
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• Interest Rate risk: refers to the effect of change in the market interest rates on the price of the bond.
The overall interest rates will change from the levels extant when the security is sold, causing an opportunity cost
• Yield Curve risk: results from the change in the yield curve and its impact on the bond
• Call Risk: is the risk that the Issuer will exercise the call option on a callable bond if the interest rates fall
• Prepayment risk: is the risk to prepayment of the principal amount before its due date
• Reinvestment risk: is the risk that the cash flows from the securities will be reinvested at a lower rate
• Credit risk: is the risk that the borrower will default on the installment payments
Risks Associated with Investing in Bonds
www.edupristine.com
• Interest Rate risk: refers to the effect of change in the market interest rates on the price of the bond.
The overall interest rates will change from the levels extant when the security is sold, causing an opportunity cost
• Yield Curve risk: results from the change in the yield curve and its impact on the bond
• Call Risk: is the risk that the Issuer will exercise the call option on a callable bond if the interest rates fall
• Prepayment risk: is the risk to prepayment of the principal amount before its due date
• Reinvestment risk: is the risk that the cash flows from the securities will be reinvested at a lower rate
• Credit risk: is the risk that the borrower will default on the installment payments
44
This files has expired at 30-Jun-13
• Currency risk – that exchange rates with other currencies will change during the security's term, causing loss of buying power in other countries
• Default risk – that the issuer will be unable to pay the scheduled interest payments due to financial hardship
• Repayment of principal risk – that the issuer will be unable to repay the principal due to financial hardship
• Soveriegn risk: refers to the risk arising out of change in government policies
• Volatility risk: refers to the change in value of securities which have embeded options as a result of interest rate volitality
Risks Associated with Investing in Bonds
• Currency risk – that exchange rates with other currencies will change during the security's term, causing loss of buying power in other countries
• Default risk – that the issuer will be unable to pay the scheduled interest payments due to financial hardship
• Repayment of principal risk – that the issuer will be unable to repay the principal due to financial hardship
• Soveriegn risk: refers to the risk arising out of change in government policies
• Volatility risk: refers to the change in value of securities which have embeded options as a result of interest rate volitality
• Currency risk – that exchange rates with other currencies will change during the security's term, causing loss of buying power in other countries
• Default risk – that the issuer will be unable to pay the scheduled interest payments due to financial hardship
• Repayment of principal risk – that the issuer will be unable to repay the principal due to financial hardship
• Soveriegn risk: refers to the risk arising out of change in government policies
• Volatility risk: refers to the change in value of securities which have embeded options as a result of interest rate volitality
Risks Associated with Investing in Bonds
• Currency risk – that exchange rates with other currencies will change during the security's term, causing loss of buying power in other countries
• Default risk – that the issuer will be unable to pay the scheduled interest payments due to financial hardship
• Repayment of principal risk – that the issuer will be unable to repay the principal due to financial hardship
• Soveriegn risk: refers to the risk arising out of change in government policies
• Volatility risk: refers to the change in value of securities which have embeded options as a result of interest rate volitality
This files has expired at 30-Jun-13
• Inflation risk: It refers to the risk of errosion of the purchasing power of the returns from the security as a a result of unexpected rise in inflation, – that the buying power of the principal will decline during the term of the security .
• Liquidity risk: The risk that the security will sell for a amount lower than its fair value due to lack of liquidity. The buyer will require the principal funds for another purpose on short notice, prior to the expiration of the security, and be unable to exchange the security for cash in the required time period without loss of fair value
• Exchange rate risk: Is the uncertainity regarding movement in the exchange rates and the consequent impact on the rerurns from the securities
Risks Associated with Investing in Bonds
© Neev Knowledge Management – Pristine
• Inflation risk: It refers to the risk of errosion of the purchasing power of the returns from the security as a a result of unexpected rise in inflation, – that the buying power of the principal will decline during the term of the security .
• Liquidity risk: The risk that the security will sell for a amount lower than its fair value due to lack of liquidity. The buyer will require the principal funds for another purpose on short notice, prior to the expiration of the security, and be unable to exchange the security for cash in the required time period without loss of fair value
• Exchange rate risk: Is the uncertainity regarding movement in the exchange rates and the consequent impact on the rerurns from the securities
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• Inflation risk: It refers to the risk of errosion of the purchasing power of the returns from the security as a a result of unexpected rise in inflation, – that the buying power of the principal will decline during the term of the security .
• Liquidity risk: The risk that the security will sell for a amount lower than its fair value due to lack of liquidity. The buyer will require the principal funds for another purpose on short notice, prior to the expiration of the security, and be unable to exchange the security for cash in the required time period without loss of fair value
• Exchange rate risk: Is the uncertainity regarding movement in the exchange rates and the consequent impact on the rerurns from the securities
Risks Associated with Investing in Bonds
www.edupristine.com
• Inflation risk: It refers to the risk of errosion of the purchasing power of the returns from the security as a a result of unexpected rise in inflation, – that the buying power of the principal will decline during the term of the security .
• Liquidity risk: The risk that the security will sell for a amount lower than its fair value due to lack of liquidity. The buyer will require the principal funds for another purpose on short notice, prior to the expiration of the security, and be unable to exchange the security for cash in the required time period without loss of fair value
• Exchange rate risk: Is the uncertainity regarding movement in the exchange rates and the consequent impact on the rerurns from the securities
46