Promoters or Issuers use securitisation vehicles as an alternative to traditional bank funding, to transfer risk or deconsolidate risk off their balance sheet.
A securitisation understaking, established under the Luxembourg Law, is incorporated by a promoter to securitise any type of assets, risks linked with receivables or any activities realised by third parties, by issuing shares, bonds or certificates.
An extremely wide range of assets can be securitised: securities (shares, notes, subordinated or non-subordinated bonds), risks linked to debt (loans, mortgages, commercial and other), but also movable and immovable property (whether tangible or not) and, more generally, any cash flow linked to a business or an activity that has a certain value or a future income.
The law of 22 March 2004 defines securitisation vehicles in the form of regulated or unregulated securitisation companies or securitisation funds.
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