It is worth noting that Bonds are considered a relatively stable asset since they pay regular interest and return the principal upon maturity, however, there are risks associated with public bond offerings, namely: 

Credit risk

The issuer’s credit rating will impact the bond’s credit risk. If the issuer’s creditworthiness deteriorates, there is an increased possibility that they may delay interest payments or principal payments or, in the worst case, default on their debt obligations.

Interest rate risk

As with Inflation Risk, Floating Rate Bonds may offer some protection against interest rate fluctuations. However, a decline in the coupon rate will lead to a decrease in income for the investor.

Inflation risk

Although Floating Rate Bonds offer some protection against inflation due to their adjustable interest rates, if inflation rises higher than anticipated, the Bond’s interest and principal payments may be worth less in real terms over time.

Liquidity risk

Floating Rate Bonds have relatively low liquidity, making them harder to sell on secondary markets, particularly during times of market stress or if the issuer is experiencing financial difficulties.