Trustee Services - Structured Finance
In common law jurisdictions (such as the Cayman Islands and Ireland) it is possible to structure repackaging and securitization transactions through a debt issuing unit trust. The unit trust is generally established under a trust deed, the beneficial interests of which are held on trust for charitable purposes. The trustee will then issue the debt securities which are limited in recourse to the secured assets of the trust. Unit trusts are often used (in place of companies or partnerships) in jurisdictions where participation in a unit trust is more acceptable or attractive than utilising a company or partnership.
A unit trust requires a licensed trust company to act as trustee. Maples Fiduciary is licensed to act as a trust company in Bermuda and the Cayman Islands, where single purpose trust companies will normally act as trustee of a single debt issuing unit trust to assist in the ring fencing of the transaction. This can often be helpful to clients in terms of managing risk.