Cayman Islands CFOs, Rated Note Feeders and Bankruptcy-RemoteStructures
Collateralised fund obligations (“CFOs”), rated note feeders and other highly structured fundraising vehicles are transforming the fund finance landscape. These structures can help managers to secure more favourable financing terms, achieve investment grade credit ratings and access new pools of capital, including insurance capital.
These structures borrow heavily from the structured finance playbook, deploying bankruptcy-remote Cayman Islands special purpose vehicles (“SPVs”) that are already familiar to global debt investors and rating agencies. The Cayman Islands offers a commercially flexible, tax-neutral and creditor-friendly framework for implementing these structures, and the Maples Group’s market-leading structured finance practice allows us to draw on decades of relevant structuring and transactional experience.
