Test Android StudyStack App
Please help StudyStack get a grant! Vote here.
Reset Password Free Sign Up

incorrect cards (0)
correct cards (0)
remaining cards (0)
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the Correct box, the DOWN ARROW key to move the card to the Incorrect box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

Correct box contains:
Time elapsed:
restart all cards

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Series 6 A

Fixed income Securities Risk

Credit Risk possibility that principal or interest will not be paid. Credit risk is usually measured against US Treasuries, which are considered to have none.
Interest Rate risk Possibility that increase in general level of interest rates will drive down prices of existing fixed-income investments. Long-term fixed income securities have more of this risk than those with shorter maturities.
Inflationary (Purchasing Power risk) Rise in general level of prices reduces the value of fixed payments. Some debt investors attempt to reduce this risk in their portfolios through equity investments or investments in gold.
Call Risk Bonds are more likely to be called when rated have dropped, forcing reinvestment of principal at low rates. Many bond issues are callable.
Prepayment risk Possibility that homeowners will repay mortgages more quickly than expected when interest rates fail. This risk is present in mortgage-backed securities and CMOs.
Created by: coderman on 2011-06-18

Copyright ©2001-2014  StudyStack LLC   All rights reserved.