Luxembourg Regulation Change – A New Opportunity for the CLO Market?

Elizabeth Fitzgibbons-Butler recently spoke to Funds Europe about how recent amendments to Luxembourg’s securitisation law have the potential to create significant opportunities for CLO managers.

The recent amendments to Luxembourg’s 2004 securitisation law mean that active management of securitisation vehicles linked to bonds, loans, and other debt instruments will now be allowed. Elizabeth assesses how these changes, which will bring new levels of flexibility and legal certainty to Luxembourg’s securitisation businesses, will impact Europe’s CLO landscape.  

“I believe that managers will look at their book and consider where they want their structure to be set up, and which jurisdiction is going to suit them best for their securitised transactions. They don’t want to be working across multiple jurisdictions – it’s complicated and time-consuming. And I think that Luxembourg leads the way when it comes to understanding loan finance,” says Elizabeth.

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