Joe Reilly, FRM, and Claire Meyers, FRM, are discussing the level of event risk in their bond portfolio. Reilly says that since their portfolio consists of investment grade bonds, event risk should not be a concern. Meyers says that since they have a small number of different issues in their portfolio, and event risk is idiosyncratic, the event risk in their portfolio is negligible. Which, if either, of these statements is based on correct assumptions?