Quick answer: A debenture trustee is an entity appointed under particular debt arrangements to act for debenture holders, monitor specified issuer obligations and exercise rights under the trust deed and applicable law. Its existence can improve collective oversight and enforcement, but it does not guarantee an issuer's solvency, insure the investment or make every bondholder whole after a default. An investor buys a corporate note with the words 'debenture trustee' printed prominently in the offering document. It sounds reassuring: someone is watching the borrower and acting for investors. But what precisely is that someone required to do? Can the trustee prevent a bad investment? Does it hold money in custody? Is it responsible for paying coupons if the issuer fails? These are different questions, and the answers matter. The title trustee can describe several roles in the financial system. A debenture trustee under debt-raising arrangements should not be confused wi...