The Law of 22 March 2004, also known as the Securitization Law contributes to the prestige of Luxembourg as a preferred domicile for foreign investors to host securitization transactions. The 2022 new securitization law creates more opportunities for international investors.
Opportunities with the Luxembourg securitization vehicle
It has created a reliable legal and tax framework that allows robust compartmentalization within securitization vehicles. In the case of insolvency, relevant investors within sub-funds are provided recourse as individual assets and liabilties are separate from other sub-funds.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.