Cayman SPVs
The Cayman Islands is one of the leading jurisdictions in which
to establish special purpose vehicles (SPVs) used for
securitisation and other structured-finance transactions. A
structured-finance transaction involves the transfer of underlying
assets to the SPV. The SPV funds that acquisition by issuing
securities, typically debt securities called 'Notes'. The
ongoing revenue from the assets repay principal and interest to the
holders of Notes (Noteholders) over the life of the deal.
Form of Entities
Structured-finance transactions can be completed through a
variety of legal entities: companies, segregated portfolio
companies, partnerships and trusts, although the vast majority are
in the form of companies. Local legislation relating to these
entities generally operates with the promotion of Cayman's
finance industry and ease of doing international business in mind.
Local government bodies such as the Registrar of Companies operate
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