Company: PPT
Filing Date: 2025-09-26
Form Type: N-CSR
Source: 0001133228-25-010195
Chunk: 156

Company: PUTNAM PREMIER INCOME TRUST
Filing Date: 2025-09-26
Form: N-CSR
Chunk 156
---

attractive

terms

and

yields.

Compared

to

debt

that

cannot

be

prepaid,

mortgage-backed

investments

are

less

likely

to

increase

in

value

during

periods

of

declining

interest

rates

and

have

a

higher

risk

of

decline

in

value

during

periods

of

rising

interest

rates.

These

investments

may

increase

the

volatility

of

the

fund.

Some

mortgage-backed

investments

receive

only

the

interest

portion

or

the

principal

portion

of

payments

on

the

underlying

mortgages.

The

yields

and

values

of

these

investments

are

extremely

sensitive

to

changes

in

interest

rates

and

in

the

rate

of

principal

payments

on

the

underlying

mortgages.

The

market

for

these

investments

may

be

volatile

and

limited,

which

may

make

them

difficult

to

buy

or

sell.

Asset-backed

securities

are

structured

like

mortgage-backed

securities,

but

instead

of

mortgage

loans

or

interests

in

mortgage

loans,

the

underlying

assets

may

include

such

items

as

motor

vehicle

installment

sales

or

installment

loan

contracts,

leases

of

various

types

of

real

and

personal

property

and

receivables

from

credit

card

agreements.

Asset-backed

securities

are

subject

to

risks

similar

to

those

of

mortgage-backed

securities.

#### •

#### Derivatives.
We

typically

engage

to

a

significant

extent

in

a

variety

of

transactions

involving

derivatives,

such

as

to-be-announced

(TBA)

commitments,

futures,

options

and

swaptions,

including

on

mortgage-backed

securities

and

indices,

forward

contracts,

certain

foreign

currency

transactions,

credit

default,

total

return

and

interest

rate

swap

contracts,

including