The Times of India  Mar 28  Comment 
Natgrid will reduce risk of conducting business in India and assist in improving investor sentiment by proving to be an effective mechanism to deter and control terrorism, Natgrid's acting CEO Rajiv Arora told a gathering of corporates at Ficci on...
Financial Times  Mar 27  Comment 
Growth prospects have slowed. The rise in the dollar and fall in oil price have created risks
Reuters  Mar 27  Comment 
* Resulting lower farmer prices could lead growers to quit cocoa
MedPage Today  Mar 27  Comment 
(MedPage Today) -- Tool could extend risk-based treatment to more low- and middle-income countries.
Forbes  Mar 27  Comment 
The linchpin of American foreign policy in the Middle East is in danger of coming loose.  Saudi Arabia, one of the world's few remaining absolute monarchies, is increasingly surrounded by sectarian turmoil that may infect the kingdom's political...
Mondo Visione  Mar 27  Comment 
Eurex Clearing, a leading clearinghouse and part of Deutsche Börse Group, today published an updated compliance report with the CPSS-IOSCO Principles for Financial Market Infrastructures (“PFMI”). The assessment was externally validated by...
Wall Street Journal  Mar 27  Comment 
European stocks edged higher Friday, reversing a two-session selloff, thanks to a revival in investors’ appetite for riskier assets despite lingering geopolitical concerns.


Risk in economic terms indicates the probability of the occurance of a specific event, which would lead to damage or loss (p.e. the likelihood of losing ship and freight to a hurricane). In distinction to risk, chance indicates the possibility of a positive outcome.

Investments include both risk and chance. This is the so called Risk-Return Tradeoff: low levels of uncertainty offer low potential returns but also low potential losses, whereas high levels of uncertainty offer high potential returns but also high potential losses. Another way many investors quantify and calculate risk is in terms of the standard deviation of returns. This is because all else being equal, risk averse investors prefer returns that are less volatile and more predictable.

Companies try to identify, analyse and control risk through concepts of risk management.

Risks of Bond Investing

Bonds carry credit risk ("will I get my money back?"), prepayment risk, liquidity risk and interest-rate risk.

  • Many bonds give the bond issuer the right to repay the bond early -- which happens more often when rates are low, in other words, just when you don't want your money back. This is prepayment risk.
  • Liquidity risk is the risk that you won't find a good price for your bond when you want to sell it -- because there are so many more bond issuers than stock issuers, and because bonds are not exchange-traded, there may not be a willing buyer.
  • Interest-rate risk is the opposite of prepayment risk: when rates go up, the value of your bond will drop (it drops more, the further away it is from maturity). If your circumstances change and you need to sell the bond before maturity, you can lose capital that you would otherwise receive, if you held the bond to maturity.
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