PwC Market Survey - April 2021
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
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.
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.
Holger von Keutz
Tel: +352 49 48 48 2383
Partner, PwC Luxembourg
Tel: +352 49 48 48 2647