Novice → Intermediate
Credit and rates
Two big bond risk families: will they pay, and how do rates move prices? Education only — not a recommendation to buy, sell, or hold anything.
Credit risk
- Chance the issuer pays late, partially, or not at all.
- Ratings are opinions — useful vocabulary, not destiny.
- Spreads over “safer” benchmarks often widen when fear rises.
Interest-rate risk
- Even strong credits can mark down when rates jump.
- Holding to maturity (if paid) still had opportunity cost along the way.
Inflation and real return (lite)
A nominal coupon can buy less later if inflation runs hot. “Safe” in nominal dollars is not the same as preserving purchasing power.
Reading the room
Ask: am I worrying about who pays (credit) or how rates reprice the bond (rates)? Both can matter at once.
Practice tip: Keep practicing rate vs price on /mock/bonds/ — fake money only.