Hi Probably a combination of the asset in the question being fairly unusual (the securitisation of future profits arising on a new railway project - that sounds suspiciously like HS2!) and the high level of inherent risk. The payment of coupons (and the ultimate redemption amount) will depend on there being sufficient profits arising from the project to meet what is due. As you are probably aware from real-world examples, there is a fairly high chance with such projects that the expected profits will fail to materialise and/or will not start to be generated until much later than expected. If an investors purchases such bonds, they may find it difficult to sell them partway through the project term - particularly if things are starting to look tricky for the project. Is that OK?
That makes sense thank you - I was thinking more along the lines that there may be plenty of investors who might like to buy it if it needed to be realised because of demand from institutional investors. But appreciate that this would not be the case if it was not looking like the project was going to be a success. Thank you, Rachael
