With spreads tightening and less money to be made, securitization professionals are increasingly looking to reduce costs. This environment has driven market players to look for structuring alternatives that help run programs as cheaply as possible. Offshore centers have responded to the call with clever structuring that provides some cost saving alternatives.
Maples and Calder said that among the securitization-related trends they're seeing more of is the use of segregated portfolio companies (SPCs) in asset-backed programs. Traditionally, these vehicles have been used for insurance purposes but have more recently been utilized for repackaging asset vehicles to cut down costs.