what is the risk of a debt security 
the risk of a debt security is that the issuer defaults on their debt if the issuer experiences financial hardship they may no longer be able to make interest payments on their outstanding debt they may also not be able to repurchase their outstanding debt at maturity particularly if they go bankrupt the bottom linedebt securities are debt instruments that investors purchase seeking returns they are issued by corporations governments and other entities in order to raise money to finance various needs they are an alternative option to equity securities such as stocks and are generally considered safer investments debt securities such as bonds can be a good way for investors to diversify their portfolios 