Structured products involve the following risks, which can result in price fluctuations and, in extreme cases, even in total losses:
- Issuer risk: The issuer risk includes unfavourable developments of the structured product resulting from the creditworthiness of the issuer.
- Market risk: Market risk is the risk of possible losses due to unfavourable developments of the base value of the structured product.
- Currency risk: Currency risks include unfavourable developments in the repayment value and the secondary market price for structured products, caused by fluctuations in the exchange rate.
- Liquidity risk: Liquidity risk is the risk involved of not always being able to sell the structured product at a reasonable price.
Detailed information on the risks of structured products can be found in the brochures below.