Securitisation in Luxembourg

Asset trends remain robust, with trade receivables firmly maintaining the lead, accounting for 22% of responses and continuing to strengthen their position year on year. As real estate activity softened slightly, bond and fund repack transactions gained momentum, rising by 2% and emerging as a key driver of market activity.

Lease receivables also staged a notable comeback, increasing by 2% and reversing previous trends, while investment fund repackages feature in around one in ten transactions—highlighting Luxembourg’s strong ties to the asset management sector. Structured products, ranking just outside the top five and being the sixth place, also saw a 3% uptick, despite typically falling outside the EU securitisation framework.

What are the Top 5 asset classes you observed in the last 12 months?

Luxembourg’s legal framework continues to stand out as a core strength of its securitisation market, combining legal certainty with a high degree of structuring flexibility. In particular, the widespread use of multi‑compartment vehicles remains a key advantage, allowing market participants to efficiently isolate risks and tailor structures within a single platform.

Tax considerations also remain an important factor, with respondents highlighting the continued appeal of a predictable and neutral tax environment, supported by access to double tax treaties. While not always the primary driver, these features remain essential in jurisdictional choice.

The 2026 survey also points to growing appreciation of Luxembourg’s broader ecosystem. The combined strength of its legal and financial toolkit, together with enhancements introduced by the 2022 reform of the Securitisation Law, saw a notable uplift in recognition, with both factors rising by 11% compared to last year. This reflects a shift towards more sophisticated structuring approaches that go beyond traditional features.

Finally, the quality of Luxembourg’s service providers continues to gain visibility, with recognition increasing by 14%, reinforcing the jurisdiction’s position as a mature and well‑supported securitisation hub.

In your opinion, what attracts arrangers for setting up a securitisation vehicle in Luxembourg?