This section contains an overview of the risks concerning investments such as structured notes, fixed income securities and CDs. This summary is not an exhaustive list of all the risks involving newly issued or secondary market securities. Investors should refer to offering documents to get a better perspective about the potential risks associated with a given security. The advice of a financial adviser may also be helpful in analyzing the risks pertaining to these items.  

  • U.S. Agency Debt Securities - Risk Considerations
  • CDs - Risk Considerations
  • Structured Investments - Risk Considerations
    Before approving any structured investments, financial advisers and their clients should consider a series of questions relating to these instruments, including:  

  • What is the purpose of this particular investment? Are there less expensive or volatile products that can achieve the same goal?
  • What forecasts or predictions are behind this product? How realistic are these factors? What other factors influence the potential returns for this investment?
  • If this investment is supposed to produce an increased yield, does that yield come at the expense of any risk to the principal? If that principal risk is “buffered,” what are the opportunities and hazards associated with that scenario?
  • What associated costs are there to this product?
  • Does the investment have any different risks involving legal ramifications, tax issues, or market investment or credit problems? Is FDIC Insurance available for this product?
  • How complex is the product, in terms of both structure and function? Is this product understandable for most people? Are there certain restrictions or contingencies associated with the payout of the investment?
  • What is the motivation for the financial adviser or brokerage firm issuing this product? How liquid is the investment? How active is the secondary market for the product? What is proposed liquidity for the product?
    Please note additional factors when determining risk/reward profiles. 
  • FDIC Insurance
  • FDIC
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