Credit risk on bonds

As you move toward the higher-risk end of the spectrum, credit risk becomes the main issue with municipal bonds, and interest rate risk has less of an impact.
The financial crisis of 2008 brought with it actual defaults.
It also brought fears of rising defaults for lower-quality bonds of all types.

According to the SEC (2013) the key risks of corporate bonds are default risk (also referred to as credit risk), interest rate risk, economic risk, liquidity risk and other significant risks including: