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Luxembourg, 4 February 2025 – Securitisations under Luxembourg law are rapidly gaining appeal among institutional investors and are poised to supplant traditional (special) funds in due course. Stephan Blohm, who recently launched a new platform for securitisation services at securities.lu in Luxembourg, is confident in this trend. “We are scaling significantly right from the start, ensuring that both cost and time requirements remain minimal”, Blohm explains. As a central administrator, securities.lu orchestrates a diverse array of securitisations – from real estate and equity to bond strategies and crypto portfolios. “Our key strength lies in acting as the processor and intermediary, seamlessly integrating various elements of the process. Meanwhile, the actual management is handled by our affiliated Luxembourg service companies.”
Thanks to the Luxembourg Securitisation Act, securitisations can be established swiftly, flexibly and cost-effectively. This advantage positions instruments such as actively managed certificates (AMCs) and green bonds as increasingly attractive alternatives to traditional funds for institutional investors. For instance, AMCs can achieve cost efficiency with investments as low as two to three million euros. Moreover, securitised products can often be implemented within just a few weeks. “These benefits are becoming ever more critical for institutional investors, and I believe that securitisations represent the future of funds”, says Stephan Blohm, Board member of securities.lu.
To develop and manage securitisations rapidly and affordably, lean digital processes and robust structures are essential – a capability that securities.lu provides by consolidating the functions of individual service companies (servicers) and assuming their responsibilities. The servicers continue to offer their customers tailored and bespoke solutions. “At securities.lu, we view ourselves as a securitisation hub: as the central administrator, we consolidate tasks that can be managed most efficiently in one place. This arrangement allows individual servicers to concentrate exclusively on delivering the solutions that best serve their specific target groups”, says Blohm.
securities.lu is organised as a Luxembourg Société Anonyme (SA) and is based in Luxembourg. “It serves as both an umbrella brand and a shared services centre”, says Blohm. The platform consolidates services such as managing securitisation platforms and compartments on behalf of the servicers. Simultaneously, securities.lu acts as a primary contact for customers. It identifies and recommends the most suitable partner from its network of servicers based on each customer’s specific requirements and projects.
The individual servicers are also established as Luxembourg SA companies. Each one crafts its own offerings and independently determines its pricing and fee structures. These companies serve as management and calculation agents for securitisation platforms that issue special compartments. They are not bound by securities.lu’s internal requirements, which allows them to specialise and target distinct market segments.
This model – combining a central securitisation hub with individual servicers issuing a diverse range of products – enables securities.lu to operate quickly, cost-effectively and with tailored solutions. “The number of servicers that can connect to our securitisation hub is unlimited. This flexibility allows us to keep central service costs low while offering a broad array of securitisations”, says Stephan Blohm.
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