Concentration Risk

Concentration risk is the risk that a large exposure to one issuer, sector, borrower, tenant, geography, or factor magnifies losses.

Why this matters to income investors

Heavy exposure to one source can disrupt a large portion of portfolio income at once.

How to use concentration risk in your research

Look at the specific exposure and the period measured. Ask whether the risk could reduce cash income, force a sale, or cause several holdings to weaken together; a single summary statistic cannot answer that alone.

This material is general education and information, not individualized investment, tax, or legal advice.