Default risk. 28.1 Debt Securities are subject to default risk, which is the risk that an issuer of Debt Securities fails to meet its debt obligations. In such circumstances the entire investment in a Debt Security may become worthless.
Default risk. 4.2.1.1 This is a risk that issuer may fail to pay bondholder the interest or principal as scheduled.
Default risk. Virtually all purchases and sales of HELVETIA Gold Ounces are made through Finemetal AG, which in turn uses the Swiss federal refinery Argor-Heraeus SA. One or both of these parties might become illiquid and unable to meet its contractual obligations. Thus the advance pay- ments made by AIF could be jeopardised by any such default. Moreover, the funds in the current account held with the Depositary are not subject to separation in insolvency.
Default risk. Default risk refers to the risk that a company that issues a convertible or debt security will be unable to fulfill its obligations to repay principal and interest. The lower a debt security is rated, the greater its default risk. As a result, the Fund may incur cost and delays in enforcing its rights against the defaulting issuer. See “Risk Factors —
Default risk. Default risk refers to the risk that a company that issues a convertible or debt security will be unable to fulfill its obligations to repay principal and interest. The lower a debt security is rated, the greater its default risk. As a result, the Fund may incur cost and delays in enforcing its rights against the defaulting issuer. Derivatives Risk. Generally, derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index, and may relate to individual debt or equity instruments, interest rates, currencies or currency exchange rates, commodities, related indexes and other assets. The Fund may utilize a variety of derivative instruments including, but not limited to, interest rate swaps, convertible securities, synthetic convertible instruments, options on individual securities, index options, long calls, covered calls, long puts, cash-secured short puts and protective puts for hedging, risk management and investment purposes. The Fund’s use of derivative instruments involves investment risks and transaction costs to which the Fund would not be subject absent the use of these instruments and, accordingly, may result in losses greater than if they had not been used. The use of derivative instruments may have risks including, among others, leverage risk, duration mismatch risk, correlation risk, liquidity risk, interest rate risk, volatility risk, credit risk, management risk and counterparty risk. The use of derivatives may also have the following risks: Correlation Risk. Imperfect correlation between the value of derivative instruments and the underlying assets of the Fund creates the possibility that the loss on such instruments may be greater than the gain in the value of the underlying assets in the Fund’s portfolio.
Default risk. Where Third Party Security Interests are created there is the risk that where we (or any other person whose obligations are secured by, or set-off against pursuant to, such Third Party Security Interests) defaults on our obligations towards the relevant Third Party, or in other circumstances, including without limitation, where the Third Party anticipates that such obligor may default on its obligations (including, for example, due to the onset or potential onset of insolvency proceedings), then such Third Party may enforce its rights over (or set-off its obligations against) your Custody Assets and, as a consequence, you may lose and not be able to recover such assets from us or from the Third Party, regardless of whether you are in actual or potential default of your obligations to us or any other person.
Default risk. LEESK Group is entitled to receive revenue share on the non-guarantee portion of the rental revenue. Any default by the end user would result in LEESK Group losing its revenue share during the non-guarantee period.
Default risk. The JVA are subject to satisfaction by the parties of their respective obligations, covenants and duties as set out in the JVA. Any breach of material obligations is an event of default and may entitle the non-breaching party to terminate the JVA and the non-defaulting party could take the necessary actions to claim damages or seek other remedies for any losses incurred as a result of such default or breach. As such, there is no assurance that YTB Group will realise the anticipated returns from the JVA and/or to recover all costs or losses incurred arising from the termination.
Default risk. Should the Borrower fail to make any payment due under the Loan Agreement, we are under no obligation to make a corresponding payment to you other than as indicated in Your Facility.
Default risk. The issuers of certain bonds could become unable to make payments on their bonds. Liquidity Risk Any security could become hard to value or to sell at a desired time and price. Liquidity risk could affect the Sub-Fund’s ability to repay repurchase proceeds by the deadline stated in the Luxembourg Prospectus. To the extent that the Sub-Fund uses derivatives to increase its net exposure to any market, rate, basket of securities or other financial reference source, fluctuations in the price of the reference source will be amplified at the Sub-Fund level.
