Securitisation

Securitisation is a financial technique that transfers risks associated with an asset or a pool of assets to investors through the issuance of financial instruments by, or the granting of credit to, a securitisation undertaking, whose value or yield depends on such risks.

Luxembourg law allows for the securitisation of all types and classes of assets. While a majority of securitisation structures set up in Luxembourg relate to all types of debt receivables, including consumer loans, trade receivables, rents or auto loans, securitisation of real estate or other asset classes is also frequent.

Our clients

Thanks to our creative spirit and solid experience, we are a leader in regulated and unregulated securitisations in Luxembourg. We provide legal guidance and support on all kinds of securitisation transactions, including regulated and non-regulated securitisations and capital market issuances of financial instruments by securitisation undertakings.

Our clients include arrangers, issuers, investors, sponsors and rating agencies, banks and other financial institutions, hedge funds and distressed debt investors, and also smaller investors seeking to establish international or local asset acquisition structures in Luxembourg.

Our services

We deliver a full range of services, including:

• Structuring and establishing a securitisation structure or programme
• Handling the structure and launch of asset-backed securities, share issuance, collateralised debt obligations, collateralised loan obligations, credit default swaps, ‘true sale’ and synthetic financial instruments, commercial mortgage-backed securitisations, whole business and public sector securitisations, securitisations of auto loans, consumer loans and trade receivables as well as hybrid securities that combine elements of debt and equity
• Assisting with the listing of securities issued by securitisation undertakings on regulated or alternative markets
• Identifying innovative structures that combine the advantages of regulated funds and unregulated securitisations
• Recommending the most appropriate structure to meet funding or investment requirements
• Advising on financing aspects relating to securitisation structures (including leverage financing, NAV financing and bridge financing)
• Advising on innovative structures including by the use of tokenisation and DLT
• Supporting compliance with obligations under the EU Alternative Investment Fund Managers Directive (AIFMD) to the extent applicable
• Advising on all matters relating to EU securitisation regulations
• Assisting with the tax structuring and tax analysis of securitisation structures
• Assisting with all reporting aspects relating to securitisation
• Structuring, assisting and advising on the implementation, restructuring, termination and liquidation of securitisation transactions, asset-based facilities and warehouse facilities

Our team works closely with our investment fund and tax colleagues to provide innovative and client-oriented solutions.