Securitisation in Luxembourg - PwC Market Survey - April 2020

The Luxembourg securitisation market is constantly evolving. In December, we conducted a survey directed to relevant Luxembourg market players including corporate servicers, law firms, banks and arrangers. 

The key findings of our survey will give you solid insight into the current situation of the Luxembourg securitisation industry.

A glimpse of the Securitisation Survey findings

The survey includes matters such as the securitisation vehicle characteristics, the assets types, investors typologies, among others. Here is an example of the survey's findings: 

Securitisation vehicle characteristics

Servicing securitisation vehicles require specific expertise and critical mass. Securitisation transaction normally needs to have total assets (sum of all compartments) of EUR 50-100m in order to be economically viable.

Securitisation vehicle characteristics
Luxembourg competitive advantage and challenges
Luxembourg competitive advantage and challenges

The first key selling point of Luxembourg remains the dedicated securitisation law which is robust and flexible. The second key element of the country is the legal possibility to create compartments and having key concepts like segregation of assets and limited recourse provided in law and applicable on compartment level. 

Please, take into account that this survey was conducted in December 2019,  when the COVID-19 the pandemic wasn't yet known to the participants. In our view, this crisis will impact the securitisation market as it will on the rest of the economy. We’ve included some aspects you want to consider to better navigate this situation. 

Contact us

Holger von Keutz

Securitisation Leader

Tel: +352 49 48 48 2383

Markus Zenz

Director, PwC Luxembourg

Tel: +352 49 48 48 2647

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