Capital Relief Trades

Capital relief trades are deals put together by banks to sell on to investors to reduce the bank's regulatory capital requirements. Such deals can take many forms, but SCI focuses on those where synthetic or securitisation structures are utilised. Those deals can be broken down into the following broad categories (deals can be combinations of these categories): CDS - credit default swaps: in the capital relief trade context, this denotes deals that utilise such instruments to transfer credit risk. CLN - credit-linked note: in the capital relief trade context, this denotes the deal is structured as a note with an embedded credit derivative. Fin gtee - Financial guarantee: a means of structuring a capital relief trade, whereby the investors benefit from a guarantee that all the issuer's obligations will be met. Funded: where a capital relief trade is understood to have been structured using a credit derivative (CDS, CLN, synthetic CDO etc) with the protection seller making an initial payment. Unfunded: where a capital relief trade is understood to have been structured without an initial payment being made under the credit derivative (CDS, CLN, synthetic CDO etc). True sale: a capital relief trade based on a cash securitisation structure rather than a synthetic securitisation structure.


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    With Fannie Mae still on the sidelines, Freddie corners CRT space

    Freddie Mac yesterday (April 19) printed its third STACR deal of the year, designated STACR 2021-DNA...

    News    20 April 2021
  • RWA boost

    ECB reveals TRIM findings

    The ECB has published the findings from its targeted review of internal models (TRIM). The exercise...

    News Analysis    20 April 2021
  • CRT seminar line-up finalised

    Workshop and roundtable discussion on the agenda

    SCI’s 5th Annual Risk Transfer & Synthetics Seminar is taking place tomor...

    News    20 April 2021
  • Risk transfer round-up - 19 April

    CRT sector developments and deal news

    News    19 April 2021
  • SCI Start the Week - 19 April

    A review of securitisation activity over the past seven days

    Last week's stories Income opportunities Angel Oak Capital Advisors, answers SCI's questions ...

    News    19 April 2021
  • Federal preemption challenges continue

    Sector developments and company hires

    Federal preemption challenges continue Two US courts have heard actions that are of significance to...

    Market moves    15 April 2021
  • Risk transfer round-up - 14 April

    CRT sector developments and deal news

    News    14 April 2021
  • Trailing Texas

    Banks with large warehouse loan books set to follow TCBI

    Regional banks with large warehouse mortgage lending books will be soon following the lead of TCBI i...

    News    14 April 2021
  • Green auto feasibility assessments underway

    Sector developments and company hires

    Green auto feasibility assessments underway CO2 emissions data reporting by auto loan lenders is...

    Market moves    13 April 2021
  • Leverage boost

    Dual-tranche SRT prepped

    News    13 April 2021
  • SCI Start the Week - 12 April

    A review of securitisation activity over the past seven days

    Last week's stories Collection boost? NPL sales increase pending amid uncertain timing Inclus...

    News    12 April 2021
  • Risk transfer round-up - 12 April

    CRT sector developments and deal news

    News    12 April 2021
  • Non-resident Aussie RMBS debuts

    Sector developments and company hires

    Non-resident Aussie RMBS debuts Brighten Home Loan is readying its inaugural RMBS - the A$250m Sola...

    Market moves    8 April 2021
  • Positive prospects

    Margin loan CRTs on the agenda

    Credit Suisse is expected to close a capital relief trade referencing Asian margin loans this quarte...

    News Analysis    8 April 2021
  • Risk transfer round-up - 7 April

    CRT sector developments and deal news

    News    7 April 2021
  • Risk transfer round-up - 6 April

    CRT sector developments and deal news

    News    6 April 2021
  • Risk transfer round-up - 1 April

    CRT sector developments and deal news

    News    1 April 2021
  • SCI Start the Week - 29 March

    A review of securitisation activity over the past seven days

    CLO pricing service selected SCI Valuations has been selected by Bloomberg's Enterprise Data busine...

    News    29 March 2021
  • Show me the money

    Debut US regional bank CRT yields too thin for traditional buyers

    Traditional capital relief trade buyers would not have been attracted to the recent Texas Capital Ba...

    News Analysis    29 March 2021
  • SRT upsized

    Reverse enquiry for agricultural loan trade

    News    26 March 2021
  • Corporate failures

    Default study sheds light on governance

    Governance failures have been shown to be a contributing factor in a large percentage of corporate d...

    News    25 March 2021