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.


  • Risk transfer round-up - 23 July

    CRT sector developments and deal news

    News    23 July 2021
  • Credit events

    US moratoria challenges highlighted

    The capital relief trades market has adapted to the existence of payment holidays by either excludin...

    News    23 July 2021
  • Credit engagement

    Raj Shourie, from Lockton's political and credit risks division, discusses how he will lead the firm...

    Q: Your role means that you will be responsible for leading the engagement with financial institutio...

    Provider Profile    22 July 2021
  • Collateral Chase

    JPMC visits CRT space again with trade referencing prime mortgages

    JP Morgan Chase is back in the regulatory capital relief market with a trade referencing 4,862 fixed...

    News    21 July 2021
  • Angel eyes

    Angel Oak Capital Advisors' Sam Dunlap talks value in non-agency MBS

    Atlanta-based Angel Oak Capital Advisors’ flagship multi-strategy income fund (ANGLX), &am...

    The Structured Credit Interview    20 July 2021
  • Six STACRs - UPDATE

    Freddie's sixth STACR of 2021 prints inside previous two

    Freddie Mac late yesterday (July 19) priced its sixth STACR deal of the year, designated STACR 2021-...

    News    20 July 2021
  • SCI Start the Week - 19 July

    A review of SCI's latest content

    Last week's news and analysis Back in vogue? Reverse equity to test market appetite B...

    News    19 July 2021
  • New CLO committee to tackle 'greenwashing'

    Sector developments and company hires

    New CLO committee to tackle ‘greenwashing’ The European Leveraged Finance Assoc...

    Market moves    15 July 2021
  • Bridging the gap   CRT Premium Content

    Sustainable SRTs to spur ESG securitisation growth?

    A steady stream of renewables significant risk transfer deals is expected to come on to the market i...

    News Analysis    14 July 2021
  • Lift off

    BMO programme details revealed

    Further details have emerged of a synthetic securitisation programme launched by BMO in late Decembe...

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

    CRT sector developments and deal news

    News    12 July 2021
  • SCI Start the Week - 12 July

    A review of SCI's latest content

    Last week's news and analysis Forbearances south of 2m Forbearances below 2m for 1st tim...

    News    12 July 2021
  • Issuance boost

    BNP Paribas leads the pack

    BNP Paribas has completed a full-stack significant risk transfer transaction backed by French unsecu...

    News    9 July 2021
  • Softly softly

    US banks reluctant to swallow issuance costs of corporate CRTs

    The imminent issue of another CRT trade from JP Morgan Chase, its fourth in a year, appears to suppo...

    News Analysis    8 July 2021
  • Fourth gear

    JP Morgan takes to the road again for fourth auto CLN in 11 months

    JP Morgan Chase is to issue its second auto loan credit linked note (CLN) of the year and its fourth...

    News    8 July 2021
  • Risk transfer round-up - 8 July

    CRT sector developments and deal news

    News    8 July 2021
  • SCI Start the Week - 5 July

    A review of SCI's latest content

    Last week's news and analysis Advantageous returns Australian RMBS market update Craz...

    News    5 July 2021
  • Risk transfer round-up - 1 July

    CRT sector developments and deal news

    News    1 July 2021
  • SCI Start the Week - 28 June

    A review of SCI's latest content

    CLO seminar tomorrow SCI’s 1st Annual CLO Special Opportunities Seminar is takin...

    News    28 June 2021
  • Back into the fold

    CRT returns to centre stage with FHFA changing of the guard

    The appointment of Sandra Thompson as the new acting director of the Federal Housing Finance Authori...

    News Analysis    25 June 2021
  • Riding a wave

    BNP Paribas executes capital call SRT

    BNP Paribas has finalised a significant risk transfer transaction backed by capital call facilities....

    News    25 June 2021