Consider how government-bond repayment risk differs from price risk.
Are government bonds always safe? Repayment risk and price risk are different. Money tied up longer can fluctuate more. Think again if you need the money tomorrow. Different conditions can produce different outcomes. When will I need this money?
The video discusses demand for safe assets and the possibility of buying long-term bonds. The webtoon does not guarantee this view; it adds that the likelihood of repayment and price fluctuations before maturity are different risks. Sovereign credit risk also varies by country, currency, and other factors. Prices of long-term fixed-rate bonds can generally fall when interest rates rise, and investors who must sell when they need the funds may incur losses.
