Risks associated with temporary acquisitions and disposals of securities and the management of financial guarantees

Temporary purchases and sales of securities are likely to create risks for the FCP such as the counterparty risk defined above. The management of collateral is likely to create risks for the FCP such as liquidity risk (i.e. the risk that a security received as collateral is not sufficiently liquid and cannot be sold quickly in the event of a counterparty default), and, where applicable, the risks associated with the reuse of cash collateral (i.e. mainly the risk that the FCP may not be able to reimburse the counterparty).