One of the biggest risks is related to interest rates; when interest rates rise, bond prices tend to fall.
However, bonds aren't completely without risk. One of the biggest risks is related to interest rates; when interest rates rise, bond prices tend to fall. Also, if the entity issuing the bond experiences a financial issue or goes bankrupt, you may never see a return. Because of this, government bonds are typically considered safer though they pay at lower rates than some private bonds.