Issuer Risk
Issuer risk is the risk associated with the entity responsible for issuing a financial instrument or token. Problems may arise if the issuer becomes insolvent, fails to meet its obligations, operates improperly or cannot continue supporting the investment structure.
Why it matters to you
Investors can become focused on the underlying asset and overlook the company or legal entity sitting between them and that asset. Even a high quality underlying asset does not automatically mean the investment structure itself is low risk.
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