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Risks
1. Interest Rate Risk: Bond prices may be affected by changes in the interest rates. The longer the term of the bond, the greater the risk that changes in the interest rates will affect the bond’s market price.
2. Credit Risk: The risk that Xylem Bond may not be repaid in full or on time. Bondholders are usually exposed to the risk of not getting their money back if the issuer of the bond fails to make timely payments.
3. Liquidity Risk: This is the risk that Xylem Bond may find it difficult to sell its bonds in times of market stress or if it needs to raise funds quickly.
4. Political Risk: This is the risk that a government action or change in regulations could negatively affect the pricing and performance of Xylem Bond's investments.
5. Currency Risk: This is the risk that the currency in which Xylem Bond's investments are denominated could experience changes in value that could affect the returns received by investors.