The strategy has, contrary to investment in e.g., equities, two fix points; The spread at the time of investment and that the bonds after three years can be sold at a price close to 100. The second fix point is important because it provides certainty about the value of the cash flow/interest payments during the investment period. 

The biggest risk in CABA Flex is that the spread widens significantly right after the time of investment. This will cause a price loss on the bonds before any money has been made. Another risk is the spread after three years when the portfolio should be liquidated. A spread widening at this point may also lead to a loss on the bonds, and in this case, it may be advantageous to extend the investment horizon so that the bonds are held until maturity.  

Hence, the risk in CABA Flex is greatest at the start of the investment period. With each passing day duration of the bonds become shorter and the risk thus becomes less.

Investors should be aware that this strategy has a duration of three years, and volatility may occur in this period. However, redemptions can be made on a daily basis.