(1) Interest rate risk. Interest rate risk refers to the risk that changes in interest rates lead to changes in bond prices and yields.
(2) Risk of price change. The bond market price often changes, and if its change is inconsistent with the investor's forecast, then the investor's capital will suffer losses.
(3) Credit risk. In corporate bond investment, due to various reasons, there is a risk that enterprises cannot fully perform their responsibilities.
(4) Transfer risks. When investors are eager to transfer their bonds, they sometimes have to make some discounts on the price or pay a certain commission.
In a word, the corporate bond market is an important part of a country's financial market and financial system structure, which plays an important role in reducing financial system risks and improving financial system efficiency. Vigorously developing the bond market and greatly increasing the proportion of corporate bond financing in direct financing will not only help to expand the scale of direct financing and improve the corporate governance structure, but also help to reduce the financing pressure in the stock market and provide investors with more investment tools and resource allocation tools. At the same time, corporate bonds have the characteristics of fixed contracts, and there are few uncertain factors that affect the sharp fluctuation of their prices during the bond duration, and the investment risk is far less than that of stock investment. In addition, there are many innovative financial instruments to avoid the interest rate risk of bonds, which make bonds more suitable for investors such as pension and insurance funds as a means of asset preservation and liquidity management, and more conducive to cultivating rational long-term investors.