What are the risks of investing in corporate bonds?

The first is interest rate risk. The price of corporate bonds is inversely proportional to the bank interest rate. The longer the remaining maturity of corporate bonds, the greater the interest rate risk. The second is liquidity risk. Corporate bonds with poor liquidity make it impossible for investors to sell bonds at reasonable prices in a short time, thus suffering losses or losing new investment opportunities. The third is credit risk, that is, the company that issues bonds cannot pay interest or repay the principal on time, thus bringing losses to investors. The fourth is the risk of recovery, that is, when interest rates fall, high-interest corporate bonds with recovery clauses may be forcibly recovered. The fifth is inflation risk. The real interest rate of corporate bonds should be coupon rate minus the inflation rate. The higher the inflation rate, the lower the real interest rate of corporate bonds. Company Law Article 153 The term "corporate bonds" as mentioned in this Law refers to the securities issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time.