Securitization - Structured finance solutions



Structured finance solutions

The Law of 22 March 2004, as amended (“the Securitization Law”), sets out a comprehensive and flexible legal, regulatory, and fiscal framework to encourage securitization business in Luxembourg. The Securitization Law was devised to facilitate capital market transactions and/or intra-group transactions, or a combination of both, but can also be used in the context of restructuring.

It is widely agreed that when used properly, securitization can increase the availability of credit and reduce the cost of funding. As a funding tool, it can contribute to a well-diversified funding base. As a risk transfer tool, it can also act to improve capital efficiency and allocate risk to match demand.


1. Preface

  • Introduction
  • The appeal of securitization
  • A new European financial market landscape
  • The state of the EU securitization market

2. Industry fundamentals

  • Benefits of securitization
  • The process
  • Types of asset-backed securities
  • Risk and return profiles of tranche notes
  • The cash flow waterfall
  • True sale securitization
  • Synthetic securitization
  • Credit enhancement
  • Securitization parties
  • Capital Requirements Regulation

3. Luxembourg securitization

  • The Luxembourg securitization framework
  • Benefits of Luxembourg securitization
  • The Luxembourg stock exchange
  • Securitization vehicles
  • Authorization and supervision
  • Accounting
  • Reporting obligations

4. Structuring scenarios

  • Structuring scenarios

5. Our services and technology

  • Our services
  • Our technology
PDF file - 6MB
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