Several of Cayman’s law firms specialise in capital markets and structured finance transactions for international clients.
A number of Cayman’s law firms specialise in structured finance and collateralised loan obligation (or CLO) transactions for international clients. The Cayman Islands has become one of the world’s leading providers of special purpose vehicles (SPVs) for structured finance transactions and is recognised by international rating agencies such as S&P, Moody’s and Fitch, as a pre-eminent jurisdiction for rated debt capital market transactions. SPVs are often used in securitisation transactions which involve the acquisition of financial assets by the SPV and the subsequent issuance of securities to institutional investors secured on the assets acquired by the SPV.
The attraction for investors in securities issued by Cayman Islands SPVs includes statutory recognition of non-petition provisions, tax-neutrality, creditor-friendly and stable legislation, a robust regulatory framework and a significant number of sophisticated professionals in the legal, accounting and fiduciary sectors who are well-versed in establishing and maintaining bankruptcy-remote, orphaned SPV structures.
