What are the risks involved in debenture?

Debentures carry several risks, primarily credit risk, which is the possibility that the issuer may default on interest payments or principal repayment. Interest rate risk also exists, as rising rates can decrease the market value of existing debentures. Additionally, liquidity risk may arise if investors find it difficult to sell the debenture in the market. Lastly, inflation risk can erode the purchasing power of fixed interest payments over time.