We are proud to present to you once again the result of our annual survey on the Luxembourg securitisation market.
This resulted in a record participation compared to prior years, with more than 60 people responding to the questions.
As in prior year, we have contacted and received feedback from the main Luxembourg market participants, like corporate servicers, law firms, banks, originators and arrangers.
A glimpse of the Securitisation Survey findings
This year again, insurance companies and pension funds were perceived to be the main investor groups in Luxembourg securitisation structures. These are followed by investment funds and banks. Family offices moved up on place four in this year’s survey which underpins the role of securitisation as an alternative investment with an interesting return for well-informed investors. With the possibility of new legal forms following the modernisation of the Luxembourg Securitisation Law (e.g. creation of a securitisation vehicle as SCSp), the use of securitisation vehicles may become even more interesting for family offices as well as private equity investors. Nevertheless, we have identified only a few new creations during 2022 using the newly permitted legal forms.
Luxembourg competitive advantage and challenges
Our respondents perceived the legal certainty and the possibility to create distinct and segregated compartments provide by the Luxembourg Securitisation Law as the key selling point for Luxembourg and one of its major competitive advantages. This is confirmed by the extensive use of multi-compartment vehicles. The modernisation of the Securitisation Law in 2022 introducing new features such as active management of debt portfolios or the loan refinancing but also the clarification of some aspects, e.g., the treatment and distribution of profit/losses of equity financed compartments was an important step to further attract market participants. Surprisingly, this year the attractive taxation was the top 3 answer of the respondents whereas it was of less significance or even an obstacle in prior years surveys. Based on our experience, taxation is usually not the main driver to set up a securitisation vehicle in Luxembourg, but rather an element checked to ensure tax treatment is not being disadvantageous.
Related content
Contact us
Xavier Balthazar
Advisory Partner, Asset Management, Regulatory & Compliance, PwC Luxembourg
Tel: +352 49 48 48 3299
Luc Petit
Tax Partner, Clients & Markets Hedge Funds Leader, PwC Luxembourg
Tel: +352 62133 31 48
Follow us
