According to Bloomberg, CLO issuance has hit record levels, largely due to the increased use of captive equity funds (investment funds that are fully controlled or sponsored by a single company) Some industry participants...
Read MoreAccording to Bloomberg, the European Central Bank (ECB) is looking to accelerate the approval process for synthetic risk transfer (SRT) transactions. The update would allow banks to submit information about a SRT transaction up to two...
Read MoreSenator Jack Reed (D-RI) submitted a letter on August 2 to Federal Reserve Chair Jerome Powell urging him to place guardrails on synthetic risk transfers (SRT). The letter expresses concern that banks are increasingly using SRT to offload...
Read MoreU.S. regional banks are entering into synthetic risk transfer (SRT) agreements with investors in an effort to prepare their balance sheets for increased capital requirements. Around 20 U.S. SRT transactions have closed, totaling $17 Billion,...
Read MoreBloomberg News reports that growing issuance of Synthetic Risk Transfers (SRTs), used by large banks to manage regulatory capital requirements, had been expected to surge this year. However, Fed Chair Jerome Powell’s recent testimony on...
Read MoreAccording 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...
Read MoreLarge U.S. banks are turning to synthetic credit risk transfers (CRT), amidst higher interest rates and proposed Basel lll capital regulations, to remove risk from their balance sheets. Until recently, CRT deals were rarely used...
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