Examples of Prepayment Risk in a sentence
Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the fund may have to invest the proceeds in securities with lower yields.
Risks Associated with Mortgage-Backed Securities: These include Market Risk, Interest Rate Risk, Credit Risk, Prepayment Risk as well as the risk that the structure of certain mortgage- backed securities may make their reaction to interest rates and other factors difficult to predict, making their prices very volatile.
Call and Prepayment Risk This is the risk that callable bonds can be called by the company that issued them, usually so the issuer can issue new bonds at a lower interest rate.
See “Risks and Special Considerations—Illiquid Securities Risk.” Prepayment Risk.
Prepayment Risk — The risk that during periods of falling interest rates, borrowers may pay off their mortgage loans sooner than expected, forcing a mutual fund to reinvest the unanticipated proceeds at lower interest rates and resulting in a decline in income.
Management Risk General Market Risk Interest Rate Risk Credit Risk Government Securities Risk Asset-Backed, Mortgage-Related and Mortgage- Backed Securities Risk Prepayment Risk Foreign Issuer Risks Geographic Focus Risk Industry and Sector Focus Risk Transactions Risk JPMorgan 529 U.S. Government Money Market Portfolio Through its investment in the JPMorgan U.S. Government Money Market Fund, the Portfolio seeks high current income with liquidity and stability of principal.
Prepayment Risk — The risk that, during periods of falling interest rates, borrowers may pay off their mortgage loans sooner than expected, forcing a fund to reinvest the unanticipated proceeds at lower interest rates and resulting in a decline in income.
Likewise, the age bands for older Beneficiaries are subject to Call Risk, Credit Risk, Current Income Risk, Extension Risk, Fixed-Income Foreign Investment Risk, Income Volatility Risk, Interest Rate Risk, Market Volatility, Liquidity and Valuation Risk, Prepayment Risk, and Special Risks for Inflation-Indexed Bonds to a greater extent than are the age bands for younger Beneficiaries.
Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields Derivatives Risk —The fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or increase volatility.
Prepayment Risk If interest rates fall, the principal on bonds and loans held by the Fund may be paid earlier than expected.