Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

Risk factors relating to the Notes
General risks regarding Notes
Interest rate risk
The interest rate level on the money and capital markets may fluctuate on a daily basis and
cause the value of the Notes to change on a daily basis.
Credit risk
The credit risk is the risk of partial or total failure of the Issuer to make interest and/or redemption
payments that the Issuer is obliged to make under the Notes.
Credit spread risk
A credit spread is the margin payable by the Issuer to the holder of a Note as a premium for
the assumed credit risk. Investors in the Notes assume the risk that the credit spread of the
Issuer changes.
Rating of the Notes
A rating of Notes may not adequately reflect all risks of the investment in such Notes and
may be suspended, downgraded or withdrawn.
Reinvestment risk
The general market interest rate may fall below the interest rate of the Note during its term,
in which event investors may not be able to reinvest cash freed from the Notes in a manner
that provides them with the same rate of return.
Risk of early redemption
The Final Terms of a particular issue of Notes may provide for a right of termination by the
Issuer. If the Issuer was to exercise its right during a period of decreasing market interest
rates, the yields received upon redemption might be lower than expected, and the redeemed
face value of the Notes might be lower than the purchase price for the Notes paid by the
investor.
Cash flow risk
In general, structured Notes provide a certain cash flow. The Final Terms set forth under
which conditions, on which dates and in which amounts interest and/or redemption amounts
are/is paid. In the event that the agreed conditions do not occur, the actual cash flows may
differ from those expected.
Option price risk
The price risk of an option is primarily influenced by the price and volatility of the underlying
assets, indices or other item(s) (the "Underlying") the strike price, the remaining term
and the risk-free interest rate. Strong fluctuations in the price or volatility of the Underlying
may influence the option price.
Currency risk – Exchange rate risk
Investors may be exposed to the risk of unfavourable changes in exchange rates or the risk
of authorities imposing or modifying exchange controls.
Inflation Risk
The inflation risk is the risk of future money depreciation which reduces the real yield from an
investment.
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