5 Types of Risks your Bonds are prone to!
Channel: Shoonya by Finvasia
Date: 01/02/2023

- Interest rate risk is the probability of a drop in the value of an asset resulting from unexpected fluctuations in interest rate

- Reinvestment risk is the chance that the bond's cash flow will go into new issues with a lower yield.

- Call risk is the likelihood that a bond's term will be cut short by the issuer if interest rates fall.

- Default risk is when the bond issuer cannot meet its financial obligations.

- Inflation risk is the possibility that inflation will erode the value of a fixed-price bond issue.

Bonds and investments are prone to market risks that can be dealt only with smart comparisons and studies. Shoonya by Finvasia is a powerful platform that allows advanced comparability tools and studies for making wise decisions.

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