Neutral impactEconomy
Bond investing: Key risks you should know before putting in money
CNBC-TV18 1 hr ago·9 Oct 2026, 7:46 am
Bonds are often seen as a safer investment than stocks, but they are not risk-free. The primary risk for investors is interest rate risk. When interest rates rise, the market value of existing bonds falls, which can lead to losses if you sell before maturity. Additionally, credit risk is a major concern; this is the chance that the bond issuer, whether a company or a government, will default on their payments.
For retail investors, liquidity risk is also important. Some bonds are traded frequently, while others are hard to sell quickly without losing value. Reinvestment risk is another factor to consider, as it occurs when the money you earn from a bond's interest payments is reinvested at a lower rate than the original bond. Understanding these risks is crucial before allocating capital to the bond market.
Excerpt from CNBC-TV18
Published On Oct 9, 2026 | 13:16 IST Last Updated On Oct 9, 2026 | 13:16 IST While bonds are considered stable, they carry risks including credit, interest rate, liquidity, reinvestment, concentration, and operational risks. Experts advise investors to assess issuer financial health, match maturities, diversify, and…Read the original at CNBC-TV18
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