Luxembourg securitisation companies, interest limitation rules and the standalone entity exception

Securitisation is a technique used to convert a broad range of illiquid assets or claims into tradable securities. As such, securitisation 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, securitisation 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 securitisation companies may, or may not, be impacted by the EU-wide interest limitation rules.