Why the Cayman Islands is good for Japanese structuredfinance.

Using Cayman Islands vehicles for Japanese securitizations brings originators and arrangers the benefit of a user-friendly jurisdiction. Involvement of Cayman Islands special purpose vehicles in Japanese structured finance transactions ranges from the simple use of Cayman corporate vehicles as holding companies at one end of the spectrum to the use, at the other end, of a Cayman company as the entity that itself issues notes or asset-backed commercial paper, enters into credit derivative transactions or assumes obligations in credit-linked loan transactions. At each extreme, the involvement of a Cayman company is testament to the particular features of Cayman Islands corporate and insolvency law that continue 10 make the Cayman Islands the offshore jurisdiction of choice for structured finance transactions.