Location

Luxembourg.

Since the implementation of the Luxembourg Securitisation Law on 22nd March 2004 („Securitisation Law“), the Luxembourg securitisation market has developed significantly. The Luxembourg legislature has managed to create a modern framework that offers institutional investors a high level of flexibility and comprehensive insolvency protection mechanisms.
In addition to the permissibility of all asset classes and securitisation instruments, institutional investors are offered the option of creating a separate cell (compartment) within a securitisation vehicle. This means that the assets contributed into the respective compartment are independent of the securitisation vehicle and of other compartments and thus protected against insolvency between themselves. Additionally the respective compartments are subject to review by a recognized auditing firm and have to fulfill corresponding organizational duties.

Luxembourg has ensured transparent and unambiguous legal certainty for institutional investors as well as reliability within the securitisation market and has established itself in recent years as the most attractive securitisation market in Europe.