DISADVANTAGES
English
  • Repayment of the principal is only guaranteed if the issuer remains solvent.
  • The price of a bond fluctuates during its lifetime.
  • The return on bonds is usually lower than that on other financial instruments, especially during periods of low interest rates.
  • The lack of demand for a security on the secondary market can cause a liquidity problem, i. e. it can be difficult to sell the securities under optimal conditions.
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