Majority of the stake is invested
in debt instruments resulting to lower risk exposure & delivering average yet constant returns.
Not exact matches
The incurrence of
debt financing would
result in debt service obligations and the
instruments governing such
debt could provide for operating and financing covenants that would restrict our operations.
As a
result, the fund has cash available to invest
in debt securities and / or money market
instruments which generally earn prevailing interest rates.
Risk Considerations: Investments
in debt instruments may decline
in value as the
result of declines
in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes
in economic, political, issuer - specific, or other conditions.
The investment objective is to provide liquidity and optimal returns to the investor by investing primarily
in a mix of short term
debt and money market
instruments which
results in a portfolio having marginally higher maturity and moderately higher credit risk as compared to a liquid fund at the same time maintaining a balance between safety and liquidity.
«There are different
results depending upon the character of the lender and borrower (non-profit or a c corporation, s corporation, partnership or LLC), the relationship between the parties (related party transactions may lose the interest deduction), the legal components of
debt and equity of the
instrument (certain preferred stock can legally be classified as
debt in one jurisdiction and stock
in another, so interest is a dividend
in one country but interest
in another and interest is deductible while dividends are not), the purpose of the loan (A CERT can trigger unintended tax costs and money borrowed to pay wages to owners is a big mistake) and much more,» says Spizzirri.
A Fund's transactions
in foreign currencies, foreign currency - denominated
debt securities and certain foreign currency options, futures contracts and forward contracts (and similar
instruments) may give rise to ordinary income or loss to the extent such income or loss
results from fluctuations
in the value of the foreign currency concerned.