Yes, that's true to a certain extent, but what we can do is to minimize that risk exposure to the best of our abilities. Some of the bonds I purchased are under water, if I needed to liquidate them, but if I can hold them till they are called back or mature, I'll always get my principal back.

I've just taken a selection of the bonds which I hold with MBB - and as you can see, some have appreciated from the purchase price (the second line within the horizontal column), while some have depreciated. Regardless of the movement, as long as the companies are not bankrupt, I will continue to receive my coupon payments on time, every time - and, at the end of the day, I will get the $250,000 back for every bond purchased (sure, I might lose out if I bought some from the secondary market, but that's usually no more than one coupon payment).

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I don’t mind sharing the little that I know  it it would be helpful to know about your financial background
as bond purchases are not for everyone.

Where can I get index fund in Malaysia?