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Risks
1. Market Risk: Saratoga Investment Company is exposed to the risk of unpredictable and volatile movements in the stock market. This can lead to significant losses.
2. Interest Rate Risk: Saratoga Investment Company’s portfolio is exposed to changes in interest rates. A rise in interest rates will lead to lower rates of return and vice versa.
3. Credit Risk: Saratoga Investment Company’s investments are exposed to the risk of default on an obligation or agreement due to financial strain from counterparties.
4. Liquidity Risk: Saratoga Investment Company is exposed to the risk of not being able to sell investments easily due to low market activity or no buyers.
5. Regulatory Risk: Saratoga Investment Company’s activities are regulated by the SEC and other financial institutions, so any changes in regulation can cause losses.