Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 02 OCTOBER 2019

The MASCOT Feature In US CLOs

Maples Group
Maples Group
Contributor
Maples Group

Maples Group

The Maples Group, through its leading international law firm, Maples and Calder, advises global...

View firm profile
Explore more from Maples Group

In recent months a new feature has appeared in the US CLO market which goes by the acronym of MASCOT.

Cayman IslandsFinance and Banking
Pamela Sen-Gupta
Pamela Sen-Gupta
Author LinkedIn connections

In recent months a new feature has appeared in the US CLO market which goes by the acronym of MASCOT. "MASCOT" stands for modifiable and splittable or combinable tranches and they have more than a passing resemblance to a feature called "MACR", which stands for modifiable and combinable Remics (where "Remics" stands for real estate mortgage investment conduits, which are special purpose vehicles that sell mortgage bonds).  The MACR feature was used in instruments called "strips" that the likes of Salomon Brothers and other banks in the 1980s brought to the US treasury and residential and commercial mortgage-backed bond markets. Strips gave investors in the safest senior part of the capital structure the option to exchange their senior notes for a combination of strips that pay only interest or a strip that pays mostly principal with a little interest.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Stablecoin Regulation 2026: Key Takeaways From Stablecoin Week And The Clarity Act Vote

The failure of the Digital Asset Market Clarity Act in the US Senate leaves cryptocurrency market participants navigating regulatory uncertainty, while major blockchain networks accelerate infrastructure development to integrate traditional banks onto stablecoin payment rails. Cross-border payments emerge as a dominant use case, with stablecoins offering faster, cheaper international settlements than correspondent banking, though compliance frameworks must evolve to match real-time transaction speeds.
Cayman IslandsFinance and Banking
Conyers
Conyers
Article

Cayman Islands Investment Funds - Summer 2026 Update

The Cayman Islands investment funds sector continues to evolve with significant regulatory updates affecting reporting requirements and the introduction of a new framework for tokenised funds. Key changes include modifications to Common Reporting Standards and Economic Substance filing procedures, alongside the implementation of legislation enabling digital token representation of fund interests.
Cayman IslandsFinance and Banking
Carey Olsen
Carey Olsen
Article

Cayman Islands Digital Assets - October 2026 Update

The Cayman Islands has introduced significant regulatory developments for digital assets, including a dedicated framework for tokenised funds, enhanced AML and sanctions rules, and strengthened market conduct requirements for virtual asset service providers. These changes provide greater regulatory certainty while reinforcing the jurisdiction's position as a leading hub for digital assets and fintech innovation.
Cayman IslandsFinance and Banking
Carey Olsen
Carey Olsen
Article

New CIMA AML Rule And Sanctions Rule: What Regulated Funds Need To Consider

New CIMA Rules effective September 2026 will transform anti-money laundering and sanctions compliance for Cayman Islands investment funds, elevating previous guidance to directly enforceable requirements. Fund governing bodies face enhanced responsibilities including mandatory annual AML training, independent audit requirements, and stricter AMLCO independence standards. Understanding these practical implications and preparing appropriate compliance frameworks will be essential for funds and their service p
Cayman IslandsFinance and Banking
Carey Olsen
Carey Olsen
Article

Establishing Your Cayman Fund, Investment Manager, Fintech Business Or Digital Asset Venture

The Cayman Islands has emerged as a leading jurisdiction for establishing funds, investment management operations, and digital asset ventures, offering regulatory clarity and a sophisticated financial services ecosystem. This guide examines the regulatory framework for traditional and tokenised funds, the Virtual Asset Service Providers Act regime, and opportunities within the Cayman Islands Special Economic Zone. Legal experts outline the practical steps and strategic advantages for fund managers, fintech
Cayman IslandsFinance and Banking
Stuarts Humphries
Stuarts Humphries
Article

New PRC Offshore Trust Tax Rules – Key Implications For Cayman And BVI Offshore Trust Structures

On 24 July 2026, China's Ministry of Finance and State Taxation Administration jointly issued the Announcement on Individual Income Tax Matters Relating to Offshore Trusts (《财政部 税务总局关于离岸信托个人所 得税有关事项的公告》) (Announcement No. 21 of 2026) (the "Notice"), together with a companion Announcement of the State Taxation Administration on Collection and Administration Matters Relating to Individual Income Tax on Offshore Trusts...
GlobalCorporate/Commercial Law
Maples Group
Maples Group
Article

AIFMD II: Key Implementation Developments In Luxembourg

Two years on from the entry into force of Directive (EU) 2024/927, commonly referred to as AIFMD II, the 16 April 2026 transposition deadline has passed, and the state of play across the EU is best described as uneven, with compliance posture increasingly dependent on where an AIFM is authorised. However, Luxembourg, which hosts the largest shares of EU AIFs within the Union, transposed the Directive without material gold-plating.
European UnionFinance and Banking
Maples Group
Maples Group