What types of bonds exist other than the US backed government bonds?

Question

And which ones are riskiest to investors?

Answer 1

There are several different types of bonds. Most corporations will offer bonds as a way to raise capital. The strength of the corporation will be how they are rated. Ratings depend on which rating system you use (Barron's, Standard and Poor, Moody). A ratings are good, B ratings are not as good but still okay, and C is getting risky. The lower the rating, the better the yield. With higher yield comes greater risk that the corporation will actually pay the coupon (and par value at the end of term). You've probably heard of the term "junk bonds". These have the low ratings and are riskiest.

Ron, ChFC

Answer 2

Corporate bonds - backed by corporations
Municipal bonds - backed by cities/towns

Corporates are the riskiest, particularly low credit quality corporates. Muni bonds are less risky than corporates, but more risky than gov't bonds. US Govt bonds are the least risky.