Credit risk for bonds

Types of bond risk
Default risk is the risk a lender takes that a borrower will not make the required payments on a debt obligation, such as a loan, a bond, or a credit card.
Lenders and investors are exposed to default risk in virtually all forms of credit offerings..
What is the biggest risk for bonds?
The biggest risk for bonds is typically considered to be interest rate risk, also known as market risk or price risk.
Interest rate risk refers to the potential for the value of a bond to fluctuate in response to changes in prevailing interest rates in the market..
Which is a risk for bonds?
These are the risks of holding bonds: Risk #1: When interest rates fall, bond prices rise.
Risk #2: Having to reinvest proceeds at a lower rate than what the funds were previously earning.
Risk #3: When inflation increases dramatically, bonds can have a negative rate of return..

Credit Risk — The risk that a bond's issuer will go into default before a bond reaches maturity.
Market Risk — The risk that a bond's value will fluctuate with changing market conditions.
Interest Rate Risk — The risk that a bond's price will fall with rising interest rates.

Types of bond risk