What are the bond risks of investment companies?

1. What are the bond risks of investment companies? 1, interest rate risk. Interest rate is one of the important factors affecting bond prices. When interest rates rise and bond prices fall, there is risk. The longer the remaining maturity of bonds, the greater the interest rate risk. 2. Liquidity risk: bonds with poor liquidity make it impossible for investors to sell bonds at reasonable prices in a short time, thus suffering reduced losses or losing new investment opportunities. 3. Credit risk refers to the loss brought to bond investors by the failure of bond issuing companies to pay bond interest or repay the principal on time. 4. Reinvestment risk. Buying short-term bonds instead of long-term bonds will have the risk of reinvestment. For example, the interest rate of long-term bonds is 14%, and the interest rate of short-term bonds is 13%. To reduce interest rate risk, buy short-term bonds. However, if the interest rate falls to 65,438+00% when the short-term bonds recover cash at maturity, it is not easy to find investment opportunities higher than 65,438+00%. It is better to invest in current long-term bonds and still get a return of 14%. In the final analysis, reinvestment risk is still an interest rate risk problem. 5. Recoverable risk, specifically bonds with recoverable clauses, because it often has the possibility of compulsory recovery, and this possibility is often when the market interest rate drops and investors charge the actual increased interest according to the nominal interest rate of bonds, a good cake often has the possibility of recovery, and our investors' expected income will suffer losses, which is called recovery risk. Second, how to prevent the risk of investing in corporate bonds? Considering the interest rate, reinvestment risk and inflation risk, we can adopt the method of diversification to buy bonds with different maturities and cooperate with different securities. In view of liquidity risk, investors should try to choose bonds with active trading. In addition, they should also think carefully before investing in bonds, and should prepare some cash for emergencies. After all, transferring bonds halfway will not bring good returns to bondholders. To guard against credit risk and repurchase risk, we must inspect the company when choosing bonds. By analyzing its statements, we can understand its profitability and solvency, operating conditions and the company's previous bond payments, and try to avoid investing in corporate bonds with poor operating conditions or bad reputation. During the period of holding bonds, we should try our best to understand the company's operating conditions so as to make a decision to sell bonds in time. To sum up, many investors will invest in corporate bonds when they manage their finances, and some large domestic companies will also sell bonds to the outside world. This investment tool has relatively high returns, but it also contains a lot of risks. Such as market risk, inflation risk, interest rate risk and credit risk. As an investor, before buying bonds, you should understand the risk factors and make a reasonable investment strategy.