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What are the Risks of Debentures ?

Some risks associated with debentures are as follows. So let us check it information on risks of debentures one by one.

Some of the risks of debentures are :

  1. Financial risk associated with debentures which should be noted. Explore advantages & Disadvantages of Debentures for detailed information.
  2. Cash outflows
  3. Obligatory payments
  4. Restriced convenants
  5. Risk to the company : Fixed charge on assets, fixed burden, risk of winding up.
  6. Risk to the Investors : No control, No extra profit, Uncertainty.

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