Bond Risk

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Bond Risk

The risk associated with investing in bonds. Major examples of bond risk include interest rate risk, which is the possibility one may not be able to reinvest at the same interest rate upon maturity; credit risk, which is the risk of default by the issuer; and inflation risk, which is the possibility that the inflation rate may outpace the return on the investment.
References in periodicals archive ?
The indices will be useful benchmarks for both dedicated green investors as well as traditional fixed income investors seeking informational measures of green bond risks and return as part of their broader portfolio allocations.
HE), a part of OP-Pohjola Group, also said that it meets the capital requirements and holds low sovereign bond risks, and would not need any immediate measures to improve its capital adequacy.
The paper asks to what extent short-term real interest rates, bond risks, and liquidity explain the trends before 2008 and the unusual developments that followed.
Not known for such autobiography in his verse, Bond risks a narcissistic rawness here.
Investors should evaluate municipal bond risks, including credit risk, interest rate risk and--in some cases--call risk.
Municipal bond risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers, and the possibility of future tax and legislative changes which could affect the market for and value of municipal securities.
These indexes may serve as a benchmark for dedicated Green Bond funds as well as informational measures of Green Bond risks and return.
These risks include small- and mid-cap stocks, which may be subject to more erratic market movements than large cap stocks; high yield ("junk") bonds, which are subject to greater credit and market risks; foreign securities, which are subject to currency fluctuation and political uncertainty; derivative securities, which may carry market, credit, and liquidity risks; short selling and leveraging techniques, which may exaggerate the fund's NAV; and credit, interest rate and prepayment bond risks.
Decomposes returns, attribution effects and bond risks using a large range of models, segmentations and effects.
According to Mongolian government officials, the release of Government Bonds will play a significant role in the short term plan to resolve existing budget-related issues and the long term plans to fund some projects and programs to reduce their bond risks and, mainly to develop the government bond marketing as well as bond trading.
Investors continue to commit considerable assets to our fixed income funds and, in particular, Vanguard High-Yield Corporate Fund, despite our ongoing educational efforts focusing on bond risks," said Vanguard Chairman John J.
The upcoming Autumn 2002 edition will feature a cover story that focuses on bond risks.