Structured Finance - Why Cayman?

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 online