*Risk Disclosure Statement

Debt Securities and debt-linked investments offer fixed returns over a defined period and are intended to be held to maturity. These instruments carry a significant amount of risk such as credit, currency and liquidity risks. Credit risk arises from default events that may result in the inability of the issuer to pay interest or principal. Default risk is high when credit rating is non-investment grade or non-rated. In a default situation, the buyer may lose both interest and principal. Currency risk arises from holding Debt Securities that are issued in foreign currency, hence exposing the buyer to fluctuations in exchange rate. There is a high chance that if the currency moves adversely, the buyer may lose more than his original interest and principal. Liquidity risk refers to the availability of prices for buying or selling into a market. It is common for most Debt Securities to suffer from poor liquidity because they are quoted over-the-counter.

Over the counter (OTC) products are not listed or available on an officially recognized securities exchange, but traded directly between two parties (buyer and seller) on a principal basis, unless otherwise stated. As a result, an OTC transaction is individually negotiated between two parties and the Customer is thus exposed to the credit risk of the counter party in which they enter into bilateral agreement with. In addition, the Customer will at any time be exposed to liquidity risk and PSPL cannot and does not warrant that there is an active trading market and the price PSPL secures for the Customer will at any time be the best price available to the Customer. In entering into an OTC transaction with the Customer, PSPL may make profit despite the Customer incurring a loss. The Customer should consider carefully whether each OTC product is suitable in light of the Customer’s investment experience, objectives, financial position, risk propensity and other relevant considerations. Customers should therefore ensure that they understand the risks associated with OTC products and transactions and seek independent advice, if necessary, before making a decision to invest in any OTC product.

Where PSPL re-sells an obligation of an Issuer or Third Party, the Customer accepts that PSPL is not obliged to settle the underlying obligation of such Issuer or Third Party and the liability of non-payment by Issuer or Third Party is to be borne by Customer and that such a transaction shall be deemed settled upon the Customer payment for the same.