the evolution
of securitization
Securitization has evolved significantly since its inception, particularly in the aftermath of the 2008 global financial crisis. Initially conceptualised as a mechanism to repackage cash-generating assets into bond-like instruments, the process underwent intense scrutiny following the financial turmoil.
Governments worldwide responded with heightened supervision and comprehensive regulatory frameworks to enhance the transparency of securitization vehicles.
The repercussions of the crisis precipitated a cautious rehabilitation of the securitization market, which has been on an upward trajectory, particularly in jurisdictions like Luxembourg.
Luxembourg’s steady
expansion
According to the European Central Bank (“ECB”) Financial Vehicle Corporations (“FVC”) statistics, as of December 2023 the country boasts over 1,700 live securitization vehicles and several thousand related compartments, with an estimated market share in the European Union of 29%, second only to Ireland. The Association for Financial Markets in Europe (“AFME”) reported issuance volumes for 2023 totalling EUR 170.8 billion.
This burgeoning sector is characterized by its steady expansion, and projections indicate that this upward trend is set to continue, bolstering Luxembourg's position as a premier European nexus for securitization and structured finance transactions.
Luxembourg’s resilience And Attractiveness
Securitization has evolved significantly since its inception, particularly in the aftermath of the 2008 global financial crisis. Initially conceptualised as a mechanism to repackage cash-generating assets into bond-like instruments, the process underwent intense scrutiny following the financial turmoil.
Governments worldwide responded with heightened supervision and comprehensive regulatory frameworks to enhance the transparency of securitization vehicles.
The repercussions of the crisis precipitated a cautious rehabilitation of the securitization market, which has been on an upward trajectory, particularly in jurisdictions like Luxembourg.
Key Benefits
that underpin
Luxembourg's allure
as a securitization hub
- its political and economic stability
- multilingual workforce
- its reputation for financial innovation
- the country’s strategic location in the heart of Europe
- its expansive double tax treaty network that provides unparalleled access to EU and global markets
The comprehensive ecosystem in Luxembourg also extends to professional services, including experienced legal, regulatory, and tax advisory services, which are crucial for the intricate structuring of securitization transactions.
These services ensure that SPVs can be tailored to meet specific investor requirements while complying with international standards.
In summary, Luxembourg's securitization sector offers a confluence of advantageous factors: a forward-thinking regulatory regime that aligns with global best practices, a conducive tax environment, and an array of professional services. These attributes not only enhance the jurisdiction's competitive edge but also assure market participants of a reliable and efficient framework for their securitization activities.
yooro is the smart platform that simplifies, accelerates and reduces the cost of securitization.
yooro is the smart platform that simplifies, accelerates and reduces the cost of securitization.
yooro is the smart platform that simplifies, accelerates and reduces the cost of securitization.
yooro is the smart platform that simplifies, accelerates and reduces the cost of securitization.