Expectations about the varying potential for default can cause substantial price differences for bonds that otherwise have similar terms. (bondmarketindexfund.com)
Additional risks include exposure to less developed or less efficient trading markets; social, political or economic instability; fluctuations in foreign currencies or currency redenomination; potential for default on sovereign debt; nationalization or expropriation of assets; settlement, custodial or other operational risks; and less stringent auditing and legal standards. (nb.com)
And the potential for default increases the further the advance goes out. (entrepreneur.com)