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What is the meaning of RISK in bonds?

powell
India

2007-09-02 06:53

Messages: 8
Country: USA
City: new york

What is the meaning of RISK in bonds?Is there a maximum risk involved if invested .What are the risks in bonds.Can anyone say me about it..

Re: What is the meaning of RISK in bonds?

steve
India

2007-09-04 14:50

Messages: 12
Country: USA
City: Wasington

Usually, A bond risk is the possibility that the issuer will not pay. This is also called "repayment risk" or "credit risk" .And in addition to credit risk, there are also other risks that are connected with bonds, just as there are risks with owning any property.

Re: What is the meaning of RISK in bonds?

adam
India

2007-09-04 15:09

Messages: 7
Country: USA
City: Boston

Each property has some risk whether it is your house, car, art set, stocks or card collection in your attic. Bonds are no diverse. A few of the more general risks linked with bonds are credit risk and interest rate,call risk, liquidity risk and regulatory risk.

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