In order to manage risk, the bond will 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 rank ahead of any other existing or indeed future loans into the business. This means that investors in the Bond will have priority over any other creditors and the shareholders of the Borrower. Nevertheless, your capital is still at risk and returns are not guaranteed.
Articles in this section
- Who can invest?
- What am I investing in?
- What is the regulatory classification of these bonds?
- What happens if the target amount for a bond is not raised?
- Why is the minimum investment as low as £100 and what is the maximum?
- Just how at risk is my capital?
- What does secured actually mean?
- What is an IRR, how is it calculated and when is it used?
- When will Downing use IRR to describe your return?
- What fees do Downing get and when?