Submitted by usr01490 on Thu, 10/10/2019 - 10:05
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.