Print this pagePrint this pageSecuritization

Hoche Partners has set up and currently operates, for its own needs and on behalf of its clients, several Luxembourg securitization vehicles.

"Securitization", as defined by the Luxembourg Law of 22nd March 2004 on Securitization, means the transaction by which a securitization undertaking acquires or assumes, directly or through another undertaking, risks relating to claims, other assets, or obligations assumed by third parties or inherent to all or part of the activities of third parties and issues securities, whose value or yield depends on such risks.

Risks related to asset ownership—whether the assets are liquid or fixed, tangible or intangible—and risks resulting from the obligations assumed by third parties or relating to all or part of the activities of third parties, can be securitized. The rights of investors and creditors are limited to the assets of the securitization undertaking.

A securitization company can also create several compartments. Where rights relate to a compartment or have arisen in connection with the creation, operation or liquidation of a compartment, they are limited to the assets of that compartment.

The assets of a compartment are exclusively available to satisfy the rights of investors in relation to that compartment and the rights of creditors whose claims have arisen in connection with the creation, operation or liquidation of that compartment. As between investors, each compartment shall be treated as a separate entity, unless otherwise specified in the constitutional documents.

For more detailed information about Securitization, please contact us.