Market risk refers to the potential for your investment's value to fluctuate due to changing market conditions. In the case of NCDs:

• Prices can go up or down based on investor demand.
• Interest rate changes play a big role — when rates go up, NCD prices typically go down, and vice versa.
• This can also affect liquidity, i.e., how easily you can buy or sell the NCD on the exchange.

Even if the issuer is reliable, market forces can impact your returns if you decide to sell the NCD before maturity.