According to Reuters, U.S. banks issued an estimated $7 billion in credit risk transfers (CRTs) in 2023, protecting against the risk of losses on mortgage and auto loans, and on corporate loans which are expected to see more capital charges under proposed Basel rules. Currently, Federal Reserve regulations restrict insurance company investors from these transactions, but novel structures involving intermediary buyers could open a path to future participation.
Credit Risk Transfer Transactions Find Growing Interest from Banks and Investors
Published on February 16, 2024
Recent News
WSJ: Strain on Small and Large Banks in the CRE Sector
July 12, 2024
Michael Bright Featured in RealClearMarkets
July 2, 2024