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SCI in Focus: Spain’s CLN Versus SPV Debate Revisited

March 12, 2026

Cadwalader special counsel Assia Damianova was featured in the Structured Credit Investor article, "SCI In Focus: Spain's CLN versus SPV debate revisited," which examines whether direct credit-linked notes (CLNs) or SPV structures better achieve significant risk transfer (SRT) in Europe.

Assia explained that STS eligibility is a checklist discipline rather than a structural choice. "If you have a deal that has to comply with a simple, transparent and standardised label, there is a checklist of criteria that have to be complied with," she said, noting that verification agents and third-party confirmations are not optional when STS is the objective.

She also noted execution discipline remains high, with "I haven't seen a deal in the last couple of years which started but didn't close," reflecting strong investor appetite and careful structuring. Additionally, she warned that advisers must ensure SRT mechanics do not inadvertently stray into regulated insurance activity or create implicit support that could jeopardize capital relief.

The article highlights how structure in SRT transactions reflects investor comfort, insolvency mechanics and governance design more than regulatory imperative.

Read more (subscription required).

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