Downing acts as a security trustee, so if the borrower was to default, we could step in and sell the assets on behalf of the bondholders. As Downing takes first charge over the assets, the bondholders will be paid out first, alongside any equal ranking creditors.
Articles in this section
- What does 'first charge' mean?
- How and when is interest paid?
- What is a SSAS?
- What is a SIPP?
- What happens if the borrower defaults?
- Bonds + Equity products
- 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?