Luxembourg law pledge
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A word about credit risk mitigation
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A pledge — that is, a form of security interest — governed by Luxembourg law.
Especially useful if your lex situs happens to be Luxembourg, which has always been relatively common, and is more so now the United Kingdom has sentenced its own financial services industry to a lingering and painful death by existing the European Union, likely to become ever more common.
Not having a developed law of equity[1], Luxembourg law doesn’t faff around with concepts like fixed or floating charges, making its security analysis a lot less tedious: there is none of this doleful “is it a fixed charge or a floating charge, oh woe is me! What would Re Spectrum Plus or the extended liens decision have to say about that?”