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