Company: PPT
Filing Date: 2025-09-26
Form Type: N-CSR
Source: 0001133228-25-010195
Chunk: 159

Company: PUTNAM PREMIER INCOME TRUST
Filing Date: 2025-09-26
Form: N-CSR
Chunk 159
---
’s

derivative

positions.

In

fact,

certain

over-the-counter

instruments

(investments

not

traded

on

an

exchange)

may

not

be

liquid.

Over-the-counter

instruments

also

involve

the

risk

that

the

other

party

to

the

derivative

transaction

may

not

be

willing

or

able

to

meet

its

obligations

with

respect

to

the

derivative

transaction.

The

risk

of

a

party

failing

to

meet

its

obligations

may

increase

if

the

fund

has

significant

exposure

to

that

counterparty.

Derivative

transactions

may

also

be

subject

to

operational

risk,

including

due

to

documentation

and

settlement

issues,

system

failures,

inadequate

### controls
and

human

error,

and

legal

risk

due

to

insufficient

documentation,

insufficient

capacity

or

authority

of

a

counterparty,

or

issues

with

respect

to

the

legality

or

enforceability

of

the

derivative

contract.

#### •

#### Floating

#### rate

#### loans.
Floating

rate

loans

are

debt

obligations

with

interest

rates

that

adjust

or

“float”

periodically

(normally

on

a

monthly

or

quarterly

basis)

based

on

a

generally

recognized

base

rate,

such

as

the

London

Inter-Bank

Offered

Rate

or

the

prime

rate

offered

by

one

or

more

major

U.S.

banks.

While

most

floating

rate

loans

are

below-investment-grade

in

quality,

many

also

are

senior

in

rank

in

the

event

of

bankruptcy

to

most

other

securities

of

the

borrower,

such

as

common

stock

or

public

bonds.

Floating

rate

loans

are

also

normally

secured

by

specific

collateral

or

assets

of

the

borrower

so

that

the

holders