I don’t see how an investor holding Treasury Notes or Treasury Bonds c...

The risk faced by an investor holding U.S Treasury securities is, certainly, low, but there are a few risks. First, these securities pay relatively low yields, making them more subject to purchasing power/inflation risk than other investments. Also, although the interest and principal payments are guaranteed by the United States Treasury, the securities have market prices, which fluctuate. An investment of $1 million into T-Bonds could drop to, say, a market value of just $800,000 if interest rates rise suddenly, for example. If that investor sells, he/she loses money. And, if the investor holds, their account value has dropped. Either way, an investment in U.S. Treasuries is low-risk, but no securities investment is “zero risk” or ensures the investor “can’t lose money.”