Domicile Structured Finance Entities
Structured financial entities are established by financial institutions (banks and companies) to sell their debt securities to investors. This commonly involves the securitising of mortgages, credit card receivables, car loans, aircraft refinancing, etc. The issuers receive cheaper and more efficient funding combined with greater balance sheet flexibility, whilst the investors receive fixed income with a high credit rating and stable cash flows.
The Cayman Islands is attractive for domiciling structured finance entities as it has a creditor friendly legal system, ability to readily obtain an investment grade rating, and an absence of withholding tax and exchange controls.
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