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A revision to the 2004 law concerning securitisation activities has been submitted to Luxembourg’s parliament. The revision aims to grow activities within this space by allowing the management of active CLOs.
While the global CLO (Collateralised Loan Obligations) market amounts to approximately $1 trillion, it is significantly more developed in the US than in Europe – with an asset split of approximately 70:30. CLOs are portfolios that pool loans to companies or private equity players that wish to make leveraged buyouts. After their repurchase, these loans are securitised and resold in different tranches to investors.
Offering the possibility of a...
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