Securitisation in Luxembourg

Securitisation in Luxembourg

The Securitisation in Luxembourg is the operation by virtue of which one undertaking (fund or company or a special purpose vehicle - SPV) acquire or assume the risks linked to receivables, to any type of assets ou any commitment assumed by third parties or linked with the activities realized by third parties, by issuing any type of securities which value and yields are linked with these securitised assets.

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  • Why Luxembourg?

    Why Luxembourg?

    Luxembourg is strategically located at the heart of Europe with a very stable economy and as a result is suffering less in comparison to other governments with regard to public deficit management. It is anticipated that no important tax reform will take place within the next years.

    There are two types of securitisation vehicles offered by the Luxembourg market to investors and financial services providers setting-up a securitisation company which is a corporate entity created before a notary public ; or setting-up a securitisation fund, i.e. an unincorporated joint ownership of assets, created contractually among its unitholders.

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  • What is Securitisation?

    Securitisation

    Securitisation allows the transferor (company, firm or natural person) to transfer to a Securitisation Vehicle those risks linked to (I) debt instruments, (II) to other assets or (III) to commitments undertaken by third parties or fully or partly inherent in business activities, through the issue of stocks and bonds whose value or yield depend on these risks.

    These assets or risks are represented by registered or bearer securities (shares, bonds or certificates) representing the income or cash flow that is generated.

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