Market Risk vs Credit Risk
What is the difference between these two? To me they are one and the same. Market risk is just fluctuation of the value/price of the securities you hold. Credit risk is defined clasically as the chance that you won’t get all your money back. To me the latter simply means that your yield will be different to what you can get in the market.
I kind of see that the prevailing interest rate is effectively the generator of market risk for fixed income securities and then credit risk is effectively another layer of risk.