Bonds do banks not buy for their own assets?

Banks typically avoid purchasing high-risk bonds, such as junk bonds, due to their lower credit ratings and higher likelihood of default. Additionally, they may steer clear of long-term bonds in a rising interest rate environment, as this can lead to significant losses. Instead, banks often favor government securities and high-quality corporate bonds that offer stability and lower risk. This strategic approach helps banks maintain liquidity and manage risk effectively.