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“The post-crisis response to the demonization of securitisation has seen regulators, bankers and investors around the world walking an often-bumpy road together to establish a regulatory environment where structured finance can support sustainable economic growth. A more cautious, chastened market is evolving seeking to re-build investor confidence.”
“Within a legal environment that becomes ever more complex, the Luxembourg securitisation law offers after 15 years still some untapped possibilities. New structures are being devised in order to adapt to the new challenges.”
“Securitisation provides new investment opportunities for institutional investors in asset classes and products that in the past were accessible only by banks. This provides the potential for generating higher returns for investors but also spreads risk across the financial sector from banks to insurance companies and funds. This diversification offers not only better risk management but also a greater degree of stability and resilience across the financial system.”
Changing tax landscape
“The evolving tax environment and new general tax rules may have an unexpected and undesired impact on more sophisticated types of securitisation transactions. The uncertainty that this creates may lead to new ways of structuring securitisation deals to preserve the tax neutrality for the investors.”
“The securitisation market offers, for different reasons, attractive investment opportunities to German institutional investors. For such investors, the Luxembourg securitisation regime generally provides a familiar, stable and efficient environment.”