What Are the Risks of Investing in Government Bonds?

[Nass]

Government bound are free risk though that the portion of the risk return back to them like bill commercial and paper etc it only recommend in a bound of it.

 

[CeeJase]

When you invest in government bonds of a state that is not stable but full of crisis, it's definitely going to affect the economy and the profit you are supposed to make from your investments.

 

[Nomad]

If your government is corrupt, you will make a huge loss by investing in government bonds. This has happened to many people in my home country. If your government is very unstable, your government bonds will not yield profits.

 

[Hojo]

In this type of investment I'd prefer you start with a low investment scheme which will not really affect your worth if at loss

 

[Kaffyfolla]

Default risk is the possibility that a bond's issuer will go bankrupt and will be unable to pay its obligations in a timely manner if at all. If the bond issuer defaults, the investor can lose part or all of the original investment and any interest that was owed.

 

[HayKay]

Government bonds carry zero risk my friend. There's no need to be told otherwise. They're one of the safest means of investment even though they're not as high yielding as most people want them but they're fantastic.

 

[greenie]

Government bonds is a good investment although A government bond does present market risk if sold prior to maturity, and also carries some inflation risk — the risk that its comparatively lower return will not keep pace with inflation. Tax Considerations: Treasury bond interest is fully taxable at the federal level but it is exempt from state and local taxes.

 

[YERUS]

Government bonds or so-called government bonds are bonds issued by the government of a country, there are also types of international bonds (sovereign bonds) denominated in foreign currencies (USD). There are many advantages if we have a government bond between: safe from credit risk or default, fixed income from periodic interest coupons set by the issuer. Generally, bond interest is higher than deposit interest or the central bank rate. The capital gain if sold on the secondary market will be greater than 100%. Government bonds as an investment instrument offer many advantages, but on the contrary, of course, there are also many risks that we should know about. So what are the risks of investing in government bonds that you know?

I do not think there are significant risks in investing in government bonds.
These government bonds are more reliable than others as their values keeps increasing over time.
One big factor that might affect government bonds would be inflation.

 

[Laurentta]

I don't think there's any risk from investing in government stocks, the major disadvantage of it though is that it is quite expensive and not everyone can afford it.

 

[Omotayo]

I don't know I think economic policies by the government could affect it, not sure. I think there are always risks associated with this sort of thing. I think the biggest one would be the lower returns.

 

[kayode10]

The risk involved with the government Bond is that you will not be able to reclaim your profit if another regime comes into power. The new regime might likely to throw away the programs of the past regime and this may include the government Bond raised by the former government.

 

[Lens]

My knowledge around government bond is that it is risk free investment. The only setback is the the profit you would be able to gather at the year end is very small. The bigger investor enjoy it more.

 

[tyrim88]

Government bonds or so-called government bonds are bonds issued by the government of a country, there are also types of international bonds (sovereign bonds) denominated in foreign currencies (USD). There are many advantages if we have a government bond between: safe from credit risk or default, fixed income from periodic interest coupons set by the issuer. Generally, bond interest is higher than deposit interest or the central bank rate. The capital gain if sold on the secondary market will be greater than 100%. Government bonds as an investment instrument offer many advantages, but on the contrary, of course, there are also many risks that we should know about. So what are the risks of investing in government bonds that you know?

I think when it comes to the aspect of buying into government bonds,it is not attatched with a condition,the governement security is risk free,one really would not need to have it at the back of his mind.

 

[frederick_9]

The low risk area of an investor's portfolio might benefit greatly from the government bonds.
They can also be a wonderful, low-risk way to start investing in the market as a whole.