BRIEF-NY Fed Statement Regarding Agency Mortgage-Backed Securities Small Value Exercise

BY Reuters | AGENCY | 05/24/22 03:11 PM EDT

May 24 (Reuters) -

* NY FED-STATEMENT REGARDING AGENCY MORTGAGE-BACKED SECURITIES SMALL VALUE EXERCISE

* NY FED- DESK INTENDS TO CONDUCT FOUR SMALL VALUE AGENCY MBS COUPON SWAP OPERATIONS ON JUNE 2, 2022

* NY FED - EACH OPERATION WILL HAVE A FACE VALUE OF $5 MILLION, FOR A TOTAL CURRENT FACE VALUE OF $20 MILLION ACROSS THE FOUR OPERATIONS. Source text for Eikon: https://nyfed.org/3yVY3Nb

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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