Subsidiary of Science Applications, Inc. JRB Associates Assisted by:
Putnam Investor Services, P. BoxBoston, MA There is no minimum for subsequent investments. Shares may be sold or exchanged by mail, by phone, or online at putnam. Some restrictions may apply. It is important to keep in mind that risk and reward generally go hand in hand; the higher the potential reward, the greater the risk.
The values of bonds and other debt instruments usually rise and fall Hrmt 386 response to changes in interest rates. Declining interest rates generally increase the value of existing debt instruments, and rising interest rates generally decrease the value of existing debt instruments.
Interest rate risk is generally greater for investments with longer maturities. Some investments give the issuer the option to call or redeem an investment before its maturity date.
If an issuer calls or redeems an investment during a time of declining interest rates, we might have to reinvest the proceeds in an investment offering a lower yield, and, therefore, the fund might not benefit from any increase in value as a result of declining interest rates.
Other bonds or securitized debt instruments in which the fund may invest are subject to varying degrees of risk. These risk factors may include the creditworthiness of the issuer and, in the case of mortgage-backed securities, the ability of the underlying borrowers to meet their obligations.
Traditional debt investments typically pay a fixed rate of interest until maturity, when the entire principal amount is due. By contrast, payments on securitized debt instruments, including mortgage-backed and asset-backed investments, typically include both interest and partial payment of principal.
Principal may also be prepaid voluntarily or as a result of refinancing or foreclosure. We may have to invest the proceeds from prepaid investments in other investments with less attractive terms and yields. Compared to debt that cannot be prepaid, mortgage-backed investments are less likely to increase in value during periods of declining interest rates and have a higher risk of decline in value during periods of rising interest rates.
Such investments may increase the volatility of the fund. Some mortgage-backed investments receive only the interest portion or the principal portion of payments on the underlying mortgages.
The yields and values of these investments are extremely sensitive to changes in interest rates and in the rate of principal payments on the underlying mortgages. The market for these investments may be volatile and limited, which may make them difficult to buy or sell. Asset-backed securities are subject to risks similar to those of mortgage-backed securities.
We may engage in a variety of transactions involving derivatives, such as futures, options and swap contracts. Derivatives are financial instruments whose value depends upon, or is derived from, the value of something else, such as one or more underlying investments, pools of investments or indexes.
We may use derivatives both for hedging and non-hedging purposes. However, we may also choose not to use derivatives based on our evaluation of market conditions or the availability of suitable derivatives. Investments in derivatives may be applied toward meeting a requirement to invest in a particular kind of investment if the derivatives have economic characteristics similar to that investment.
Derivatives involve special risks and may result in losses. The successful use of derivatives depends on our ability to manage these sophisticated instruments. As a result, these derivatives may magnify or otherwise increase investment losses to the fund.
The risk of loss from certain short derivatives positions is theoretically unlimited. The value of derivatives may move in unexpected ways due to the use of leverage or other factors, especially in unusual market conditions, and may result in increased volatility.
Other risks arise from the potential inability to terminate or sell derivatives positions. In fact, many over-the-counter instruments investments not traded on an exchange will not be liquid.
Over-the-counter instruments also involve the risk that the other party to the derivatives transaction will not meet its obligations. In addition to the main investment strategies described above, the fund may make other types of investments, such as investments in zero-coupon bonds.Exam Study Guides for HRMT Covers all exam topics.
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Immediately downstream of hrmE are the homologs of frtABC, namely, hrmB1, hrmB2, hrmT, and hrmP. It appears likely that hrmB1-hrmB2-hrmTP. The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution. Share class: Maximum sales charge (load) imposed on purchases (as a percentage of offering price) Maximum deferred sales charge (load) (as a percentage of original purchase price or redemption proceeds, whichever is lower).
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