The Cayman Islands provide an hospitable regulatory environment in which to conduct structured finance transactions with an English common law base.
Specific legislation provides certainty for netting and set off.
Cayman islands special purpose vehicles regularly receive Triple A ratings from the ratings agencies. An abundance of first-class financial institutions with fully staffed branches in the Cayman islands facilitates the establishment of structured finance transactions. The trend of multinational institutions to engage in offshore structured finance transactions con continues to accelerate. The Cayman Islands continue to be the venue of choice from which to base complex structured finance transactions. The same factors that enhanced the development of the banking, insurance, and mutual fund industries in the Cayman Islands proved of similar benefit to the development of the capital markets and structured finance transactions.