Company: FCO
Filing Date: 2025-01-10
Form Type: N-CSR
Source: 0001104659-25-002474
Chunk: 77

Company: ABRDN GLOBAL INCOME FUND, INC.
Filing Date: 2025-01-10
Form: N-CSR
Chunk 77
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atives"). Derivatives are most often used to manage interest rate, currency and credit risk, to increase or decrease exposure to an asset class or benchmark (as a hedge or to enhance return), or to create an investment position directly (often because it is more efficient or less costly than direct investment). There is no guarantee that these results can be achieved through the use of derivatives and any success in their use depends on a variety of factors including the ability of the Advisers to predict correctly the direction of interest rates, securities prices, currency exchange rates and other factors. The primary risk of derivatives is the same as the risk of the underlying asset, namely that the value of the underlying asset may increase or decrease. Adverse movements in the value of the underlying asset can expose the Fund to losses, which can be increased if derivatives are used to obtain leverage. In addition, risks in the use of derivatives include:

| • | an imperfect correlation between the price of derivatives and the movement of the securities prices, interest rates or currency exchange rates being hedged or replicated; |

| • | the possible absence of a liquid secondary market for any particular derivatives contract at any time and the need to continue making margin and settlement payments thereunder; |

| • | the potential loss if the counterparty to the transaction does not perform as promised; |

| • | the possible need to defer closing out certain positions to avoid adverse tax consequences, as well as the possibility that derivative transactions may result in acceleration of gain, deferral of losses 
 or a change in the character of gain realized;                                                                                                                                                             |

| 56 | abrdn Global Income Fund, Inc. |

Additional Information Regarding the Fund (Unaudited) (continued)

| • | the risk that the financial intermediary "manufacturing" the over-the-counter derivative will not continue to offer a credible market in the derivative; |

| • | because certain derivatives are "manufactured" by financial institutions, the risk that the Fund may develop a substantial exposure to financial institution counterparties; |

| • | the risk that a full and complete appreciation of the complexity of derivatives and how future value is affected by various factors including changing interest rates, exchange rates and credit quality 
 is not attained; and                                                                                                                                                                                     |

| • | the risk that the Fund would need additional liquidity to meet the payment obligations created by the derivatives contract. |

Derivatives also may create operational and legal risks for the Fund. There is no guarantee that derivatives will provide successful results and any success in their use depends on a variety of factors