SRZ acted as counsel to a Cayman company formed in 2007 to purchase leveraged loans and to sell credit protection on leveraged loans. The company was successful in issuing eight tranches of notes in a single month, which received ratings from both Standard & Poor’s and Moody’s. It became one of the first CLOs to invest in both loans and loan credit default swaps (LCDS), a new type of credit default swap under which credit protection can be bought or sold “synthetically” on the secured loan segment of the capital structure of a below-investment-grade company.