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Securitisation in Luxembourg

PwC Market Survey - April 2021

Following the positive feedback we received about our first survey on the Luxembourg securitisation market in 2020, we have asked your opinion again in 2021 and we are now happy to present the results of this year’s survey.

As in the prior year, we have contacted and received feedback from the main Luxembourg market participants, such as corporate servicers, law firms, banks and arrangers. 

Besides questions around the characteristics, asset types, the means of finance and the investor base of the different securitisation vehicles, we were also keen to get the market’s view on the major challenges and opportunities and on current topics like the impact of the COVID-19 pandemic and the Brexit on the securitisation market.

A glimpse of the Securitisation Survey findings

The survey includes matters such as the securitisation vehicles characteristics, the asset types and investors typologies, among others.

Securitisation vehicle characteristics

Last year’s market survey showed that securitisation vehicles require specific expertise and a minimum volume to be serviced. This view has  also been confirmed by this year’s results, as most of the respondents state that they are servicing securitisation vehicles with an average of total assets under passive management above EUR 100 Mio.

Securitisation vehicle characteristics
Luxembourg competitive advantage and challenges

Luxembourg competitive advantage and challenges

The key selling points for Luxembourg as a securitisation market as per our survey responses remain almost unchanged to the prior year. Based on this, the dedicated, robust and flexible Securitisation Law remains most important to attract arrangers for setting up their vehicle in Luxembourg. We think that the planned modernisation of the Securitisation Law will further underpin this view. Multiple compartments under one structure is an attractive and widely used concept, both in Luxembourg securitisation and fund structures. 

Furthermore, taxation plays a relevant role for decision takers. 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 disadvantageous.

Contact us

Holger von Keutz

Securitisation Leader

Tel: +352 49 48 48 2383

Markus Zenz

Partner, PwC Luxembourg

Tel: +352 49 48 48 2647

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