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 - 20 October

    CRT sector developments and deal news

    Standard Chartered is rumoured to be prepping a capital relief trade backed by emerging market corpo...

    News    20 October 2020
  • SCI Start the Week - 19 October

    A review of securitisation activity over the past seven days

    Last week's stories Compromise pending Parliament softens stance on 'problematic' proposals M...

    News    19 October 2020
  • Made in the USA

    Speakers at SCI conference herald dawn of new era for US CRT

    "Every year I join these conferences and I say 'This is the year of the USA,...

    News    16 October 2020
  • SME CRT completed

    Intesa finalises mezz guarantee

    Intesa Sanpaolo, the EIF and the EIB have completed a €90m mezzanine guarantee that referen...

    News    15 October 2020
  • Compromise pending

    Parliament softens stance on 'problematic' proposals

    The European Parliament will likely drop proposals for the exclusion of time calls and pro-rata amor...

    News Analysis    15 October 2020
  • First EGF guarantee inked

    Sector developments and company hires

    First EGF guarantee inked The EIB has approved €5.1bn of new financing to support investme...

    Market moves    14 October 2020
  • Risk transfer round-up - 12 October

    CRT sector developments and deal news

    Barclays is rumoured to be prepping a corporate capital relief trade that is set to close in 4Q20. T...

    News    12 October 2020
  • SCI Start the Week - 12 October

    A review of securitisation activity over the past seven days

    Last week's stories Absolute attraction Absolute 2021-1 shows growth of US CRT market and pass-t...

    News    12 October 2020
  • Growth opportunities

    Chapter five of SCI's Autumn 2020 CRT Research Report

    The fifth and final chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report out...

    News Analysis    9 October 2020
  • Finnish lift off

    Latest KIMI deal completed

    Santander has completed a €650m full-stack significant risk transfer trade backed by Finnis...

    News    8 October 2020
  • Transatlantic challenges

    Contributed thought leadership by Mayer Brown

    Complying with EU and US CRT rules simultaneously A number of law firms have developed excellent s...

    Talking Point    8 October 2020
  • Stepping up

    Chapter four of SCI's Autumn 2020 CRT Research Report

    The fourth chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report highlights t...

    News Analysis    8 October 2020
  • Seeking clarity

    Chapter three of SCI's Autumn 2020 CRT Research Report

    The third chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report examines the...

    News Analysis    7 October 2020
  • Absolute attraction

    Absolute 2021-1 shows growth of US CRT market and pass-through appetite

    The sale of Absolute 2021-1‘s pass-throughs - the $184.8m repack of two CLNs from Goldman...

    News    7 October 2020
  • 'Quick fix' draft legislation published

    Sector developments and company hires

    ‘Quick fix’ draft legislation published The European Parliament has published d...

    Market moves    6 October 2020
  • SRT for the real economy

    Chapter two of SCI's Autumn 2020 CRT Research Report

    The second chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report explores how...

    News Analysis    6 October 2020
  • Synthetics seminar line-up finalised

    Fireside chat, CRT workshop on the agenda

    The line-up for SCI’s 4th Annual Risk Transfer & Synthetics Seminar has b...

    News    6 October 2020
  • Range of moratoria take-up 'stark'

    Sector developments and company hires

    Range of moratoria take-up ‘stark’ With payment holiday concentrations having f...

    Market moves    5 October 2020
  • Risk transfer round-up - 5 October

    CRT sector developments and deal news

    Lloyds is rumoured to be readying its third mortgage significant risk transfer trade from the Syon p...

    News    5 October 2020
  • Transmitting credit

    SRT and the real economy explored

    SCI will be publishing a chapter of our Autumn 2020 CRT Research Report each day this week. While to...

    News    5 October 2020
  • SME boost

    Commerzbank completes CRT

    Commerzbank, the EIF and the EIB have completed a €125m mezzanine guarantee that references...

    News    2 October 2020