There can be no assurances that investments VII Peaks recommends will achieve their investment objective or have positive returns; all investments carry a risk of loss, including a loss of capital. You may have a gain or loss when selling your investments.
Investments in bonds are subject to credit, prepayment, call and interest rate risk. As interest rates rise the value of bond prices will decline. Credit risk refers to the loss in the value of a security based on a default in the payment of principle and/or interest of the security, or the perception of the market of such default. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high –yield bonds. Examples of other adverse credit events are interest rate risk and economic risk (the risk associated with downturns in the economy).
This website is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security.