Throughout its history in Luxembourg, Firminy Capital Sarl has managed a number of Luxembourg Securitization Funds, including the private fund known as the Firminy Equity Fund. Thanks to the support of Top 500 financial specialists, Firminy Capital Sarl has emerged as a reputable firm in the Luxembourg securitization sector.

1. CHARACTERISTICS OF
SECURITIZED ASSETS
By Firminy Capital Sarl

2. Introduction
 Throughout its history in Luxembourg, Firminy Capital Sarl
has managed a number of Luxembourg Securitization Funds,
including the private fund known as the Firminy Equity Fund.
Thanks to the support of Top 500 financial specialists, Firminy
Capital Sarl has emerged as a reputable firm in the
Luxembourg securitization sector.
Although securitization principles can be applied to many
different types of pooled assets, securitized products typically
include many of the same basic features. Securitized
products generally have a higher-than-average yield, which
comes at the cost of less-certain cash flow timing. Securitized
products are also highly diverse in nature, allowing investors
to access the relatively low levels of risk typically associated
with vehicles such as government bonds.

3. Securitized Assets
 In terms of safety, securitized products are
much better protected than their underlying
assets. Although an individual asset can
feature considerable volatility, the larger pool
of assets benefits from protective structures
such as investment-grade ratings and internal
credit enhancement. However, if all underlying
assets suffer significant losses, like mortgages
did during the financial crisis of 2008, internal
credit enhancement can do little to protect
investors from losses.