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What are the risk relating to th debentures?

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Q: What are the risk relating to the debentures?
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What are the disadvantages of debentures?

Debentures hold greater risk because the company could eventually go out of the business. so this type of investment should be done very carefully.


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Risk Weighted Asset?

A bank's assets weighted according to credit risk. Some assets, such as debentures, are assigned a higher risk than others, such as cash. This sort of asset calculation is used in determining the capital requirement for a financial institution, and is regulated by the Federal Reserve Board. Source: investorwords.com