Receivables securitization converts amounts owed to a company into a security. The receivables are transferred into a compartment of a Luxembourg SPV, ring-fenced by law, and that compartment issues a note under its own ISIN. Collections received by the compartment fund the payments due under the note.
A company with a book of receivables holds value it cannot easily move. MTCM takes that book into a ring-fenced compartment of one of its six Luxembourg SPVs; the note issued from it has an ISIN of its own. The compartment can acquire receivables that already exist, or act as first lender and originate the facility itself where that suits the counterparties better. Under the Luxembourg Securitization Law of 22 March 2004 each compartment is bankruptcy remote, so a difficulty at the originator does not reach the noteholders. The platform works with GSK Stockmann as legal counsel, and with PwC and Atwell as auditors.
Held in custody, transferred or listed like any other security.
Segregated by law from every other transaction on the platform.
Protection runs in both directions.
The exposure leaves the originator’s balance sheet.
Invoices and payments due for goods and services already delivered.
Receivables from residential and commercial mortgage lending.
Outstanding balances owed on card portfolios.
Payments due under vehicle finance and lease agreements.
Financing agreements over business equipment.
Recurring amounts due under utility, telecom and subscription contracts.
Amounts owed between entities within a corporate group.
Identified amounts expected to fall due, such as a contracted future sale price.
Premium and recovery balances due under identified policies.
Amounts due from public bodies under existing contracts.
Receivables securitization converts amounts owed to a company into a security. The book of receivables goes into one ring-fenced compartment of a Luxembourg SPV, which issues a note carrying an ISIN of its own. Collections received by the compartment fund the payments due under the note.
Trade invoices, mortgages, credit card balances, auto and equipment finance, utility and subscription billing, intra-group loans, insurance balances, public sector receivables, and identified future amounts such as a contracted future sale price.
Yes, where the amount is identified and rests on an existing contract, such as a contracted future sale price or a defined stream of contracted payments. What matters is that the receivable can be identified and assessed, not that it has already been invoiced.
Instead of acquiring receivables that already exist, the compartment grants the facility itself. The borrower deals with a single lender of record, and the note is issued against the facility the compartment has originated.
Usually yes. The originator normally continues to service the book and collect from obligors, passing collections to the compartment under a servicing arrangement. Servicing responsibilities are set out when the compartment is structured.
Companies with a substantial receivables book that want to release working capital, lenders and factoring businesses that need to transfer exposure, and wealth managers whose clients want receivables exposure in custody-eligible form.
| Purchase of existing receivables | Compartment as first lender | |
|---|---|---|
| What moves | Receivables already on the originator’s books | New money to the borrower |
| Documentation | Assignment or true-sale agreement | Facility agreement granted by the compartment |
| Typical use | Releasing working capital from a book | Financing a counterparty directly |
| Balance sheet | Receivables come off the originator’s books | No pre-existing asset to transfer |
80+ active compartments · €2.5 bn+ assets structured. Indicative platform figures.