TY - JOUR T1 - Using the Cayman Islands and Other Offshore Jurisdictions for Securitization Transactions JF - The Journal of Structured Finance SP - 36 LP - 41 DO - 10.3905/jsf.2004.426069 VL - 10 IS - 2 AU - Manuela R. Belmontes Y1 - 2004/07/31 UR - https://pm-research.com/content/10/2/36.abstract N2 - There has been continued growth in the use of the Cayman Islands and other offshore jurisdictions for securitization transactions. Sponsors analyze several factors when structuring a securitization transaction and selecting an appropriate jurisdiction for an SPV. These factors include: 1) ensuring that the transaction is tax-neutral in order to avoid any tax leakage arising through the payment of corporation tax in the jurisdiction of incorporation of the SPV, or where it is deemed to be carrying on business, or through withholding taxes on payments made or received by the SPV; 2) ensuring that the SPV is ?bankruptcy-remote? so that it and its assets are effectively? ring-fenced? and, accordingly, would not be effected adversely by the bankruptcy of the originator; 3) ensuring that the jurisdiction of incorporation of the SPV is credible to, and accepted by, the rating agencies and prospective investors and that its legal regime is familiar and creditor-friendly, and thereby suitable for such transactions; 4) ensuring that experienced professional service providers are readily available in the jurisdiction of incorporation of the SPV; and 5) ensuring that the cost, ease, and speed of setting up the structure and completing the transaction are within the budget and timeframe set for the securitization by the transaction parties. ER -