Collateral Trusts can be used for various commercial purposes. Where security for performance is required, this structure enables the settlor to maintain sufficient collateral to meet agreed requirements.
In the reinsurance industry, this structure can be utilised to create special purpose vehicles including side cars and catastrophe bonds. Special purpose vehicles are formed to hold assets being securitised. SPVs are constructed for a specific purpose and with a limited life span.
Our in-house experts are continually developing new approaches that enhance the speed and effectiveness of these tools. For more information on the various uses of a Collateral Trust, contact the experienced professionals in our Institutional Trust department.
Butterfield Trust (Bermuda) Limited is a wholly-owned subsidiary of The Bank of N.T. Butterfield & Son Limited and is licensed to conduct trust business by the Bermuda Monetary Authority.
For more information on Commercial & Insurance Trusts, click here.