Interest Limitation Rules and Luxembourg Securitization Companies

Securitization is a technique used to convert a broad range of illiquid assets or claims into tradable securities. As such, securitization transactions may create liquidity for the original lenders (or originators) and present an attractive and diversified investment opportunity for investors. In the current COVID-19 crisis, securitization may contribute to the efficiency of financial markets and provide businesses with much needed liquidity. In this article, the authors analyse to which extent Luxembourg securitization companies may, or may not, be impacted by the EU-wide interest limitation rules.