In order to manage risk, the bond will typically be secured by a legal charge on the underlying assets in the Special Purpose Vehicle (SPV), which means if the borrower defaults on the bond, Downing LLP, as security trustee, can take control of these assets. Bondholders typically rank ahead or equal to any other existing or indeed future loans into the business. This means that investors in the bond are likely to have priority over any other creditors and the shareholders of the borrower. Nevertheless, your capital is still at risk and returns are not guaranteed.