Securitisation vehicles work by taking on particular financial risks and issuing securities, with the value of these securities determined by the types of risks assumed by the vehicle.
Securitisation vehicles in Luxembourg are a particularly effective way for international originators and promoters to incorporate a financial and bankruptcy remote structure within the framework of a favourable and flexible jurisdiction.
Securitisation vehicles in Luxembourg can assume a wide range of risks. These may include claims, assets, obligations, loans, bonds, shares – if it can be valued and ascribed a future income, it could be almost any type of movable or immovable assets situated anywhere in the world.
Securitisation law in Luxembourg allows for all kinds of investors from all over the world, including corporations and individuals to invest. In terms of legal status, securitisation vehicles can be incorporated into a securitisation company – for example as a limited partnership – or they can be formed as a securitisation fund run by a management company.
Both funds and companies are flexible and allow for a variety of compartments with differing investment profiles, with each compartment conferring its investors and creditors with distinct rights as well as bankruptcy remote status from other compartments in the vehicle.
Flexibility, the option of a tax transparent vehicle or a non-tax transparent vehicle, exemption from the 0.5% net wealth tax, the ability to enjoy the benefit of the Grand Duchy's double tax treaties. The list goes on, so there are many reasons why it makes sense for investors to consider a securitisation vehicle in Luxembourg and there is no one better equipped to meet your needs and interests better than Creatrust. Find out more by contacting us today.
How can Creatrust help you?
Analysis of the proposed waterfall
Security issuance and listing
Corporate, legal and tax advisory
Set-up of your securitisation vehicle
Securitisation vehicle accounting
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