A German version of this article was published HERE, among others.
Luxembourg, 10th January 2024 – The traditional fund industry is facing increasing pressure. Intelligent securitisations are gaining a significant market share in the institutional space. “Unlike funds, such securitisations can be established in a matter of weeks under Luxembourg law and at significantly lower costs”, says Stephan Blohm, a member of the Board of Directors at securities.lu. “We have accelerated the process even further.”
Luxembourg’s Securitisation Law is especially well-established and comprehensive, even by global standards. Its high level of transparency allows for the flexible and timely release of new products. “Securitisations can be created in the form of actively managed certificates (AMCs) or green bonds, for example”, Blohm explains. “The key is that all parties involved in the product meet certain standards that ensure smooth cooperation.” Previously, issuing AMCs, in particular, has often been a highly personalised service. With the “AMC Issuer”, securities.lu is taking a new approach by standardising the processes during set-up, which saves a significant amount of time.
securities.lu is an experienced master administrator that aims to provide institutional clients with “Made in Luxembourg” AMCs. To that end, the company employs a large network of service providers and partners to ensure smooth collaboration. “Our customers can put together their products in a very flexible manner based on their ideas. This allows for quick and personalised implementation in just a few weeks”, Blohm points out.
The minimum size is the most significant difference to issuing a fund. The products are starting to be cost-effective from a volume of two to three million euros. “Thus, our AMC line can certainly be considered an alternative to the fund industry’s traditional business with small and medium-sized securities funds”, Blohm goes on to say. All the while, this is only applicable to institutional business since securitisation products such as AMCs are not intended or appropriate for the traditional retail market.