According to whether investors are graded or not, bonds can be divided into structured products and unstructured products. Investor classification includes secondary, intermediate and priority. For the sake of risk control, China's private equity funds are not allowed to promise guaranteed income, and the contribution of inferior investors will play the role of credit enhancement and invisible guarantee for the fund, which is a safety mat. When bonds are withdrawn, the principal and agreed income are distributed to priority investors first. Priority funds have low risk and limited income, while inferior funds have high risk and can obtain excess income.
There is no distinction between priority and inferior level, and all investors bear the same risks and benefits.