Luxembourg continues to be a leading securitization domicile based on Q1 2023 statistics

Based on the European Central Bank (ECB) Financial Vehicle Corporations (FVC) statistics reported each quarter, the total market is slightly shrinking.

Yet, Luxembourg remains one of the most favorable countries for domiciliation of securitization vehicles, growing faster than the European market and holding a current market share of 28.1%. This makes Luxembourg the largest domicile after Ireland. While the entity count is stable and the reported ISIN number has dropped by 5.9%, the volume of the Luxembourg market has grown 3.1% while the total market has reduced 0.1%. Ireland’s total market, however, has declined by 1.0%.

Based on EY Research, the Luxembourg securitization market continues to grow in Q1 2023. The vast majority of vehicles comprise securitization companies (+1% vs. Q4 2022). The growth dynamic in securitization funds and related securitization management companies is higher, seeing increases of +3.2% for funds and +2.7% for their management companies since Q4 2022. The total market has grown by 1.2%, from 1,673 (Q4 2022) to  1,693 (Q1 2023). 

Interestingly, while the vast majority of Luxembourg’s market is represented by securitization companies (89.8%), the growth rate of securitization funds and their management companies is close to 3% and therefore three times higher than the growth rate of securitization companies.