# Reinvestment Risk

*Risk & Portfolio — Finicade finance glossary*

Reinvestment risk is the danger that coupons and maturing principal must be reinvested at lower rates than the original investment earned. It's the mirror image of price risk: when yields fall, your bond gains value but your future income drops. Yield to maturity quietly assumes every coupon is reinvested at the same yield, which is why zero-coupon bonds — with nothing to reinvest — are the only clean way to lock a return.

**Also known as:** reinvestment rate risk

**Related terms:** [Bond Ladder](https://finicade.com/glossary/bond-ladder), [Interest Rate Risk](https://finicade.com/glossary/interest-rate-risk), [Callable Bond](https://finicade.com/glossary/callable-bond), [Yield to Maturity (YTM)](https://finicade.com/glossary/yield-to-maturity), [Zero-Coupon Bond](https://finicade.com/glossary/zero-coupon-bond)

Source: https://finicade.com/glossary/reinvestment-risk