Why are Percent notes Unsecured?

All of our offerings are considered "Unsecured" because they are structured using a bankruptcy remote special purpose vehicle (SPV) that has no assets other than itself. The SPV serves as the lender and has a perfected security interest in all properties, assets and rights of the borrower. Because the SPV serves as a pass-through vehicle, this underlying security extends to investors' participation.

Unsecured vs Collateralized

Fully collateralized refers to the deal's economic structure. It means the borrower has pledged assets (collateral) to support the obligation, and those assets are intended to secure repayment of the underlying loan at the borrower level.