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.


  • SCI Awards: Investor of the Year

    Winner: Christofferson, Robb & Company

    Ever-present in risk sharing transactions (RST) since its formation in 2002, the CRT awards year 202...

    News    19 October 2021
  • SCI CRT Awards: Innovation of the Year

    Winner: Colisée 2020

    Societe Generale’s Colisée 2020, a private club capital relief trade that provi...

    News    18 October 2021
  • Risk transfer round-up - 18 October

    CRT sector developments and deal news

    News    18 October 2021
  • SRT prints

    KIMI X prices tight

    Santander has finalised a full-stack capital relief trade backed by a €450m portfolio of Fi...

    News    18 October 2021
  • SCI Start the Week - 18 October

    A review of SCI's latest content

    Last week's news and analysis Beyond Covid-19: What effect has the pandemic had on the E...

    News    18 October 2021
  • SCI CRT Awards: Impact Deal of the Year

    Winner: Marco Polo Three

    Crédit Agricole and the IFC’s Marco Polo Three transaction has won the Impact D...

    News    18 October 2021
  • SCI CRT Awards: North American Transaction of the Year

    Winner: TCB CRT 2021-1

    The arrival of the first US regional bank in the capital relief trades sector had been anticipated a...

    News    15 October 2021
  • SCI CRT Awards: Transaction of the Year

    Winner: Siena 2021 - RegCap-1

    Banca Monte dei Paschi di Siena’s Siena 2021 - RegCap-1 has won the Transaction of the Yea...

    News    15 October 2021
  • Risk transfer round-up - 15 October

    CRT sector developments and deal news

    News    15 October 2021
  • SCI Start the Week - 11 October

    A review of SCI's latest content

    CRT seminar in person THIS WEEK SCI’s 7th Annual Capital Relief Trades Seminar is taking...

    News    11 October 2021
  • Provisioning relief

    Second Stage 2 SRT finalised

    News    8 October 2021
  • Landmark guarantee inked

    ThinCats and BBB seal agreement

    The British Business Bank and alternative lender ThinCats have finalised a guarantee agreement via t...

    News Analysis    8 October 2021
  • Risk transfer round-up - 6 October

    CRT sector developments and deal news

    News    6 October 2021
  • CRT seminar line-up finalised

    Fireside chat, awards on the agenda

    SCI’s 7th Annual Capital Relief Trades Seminar is taking place in-person on 13 October at...

    News    6 October 2021
  • CRT crush

    Mayer Brown working with 'many' imminent issuers

    Mayer Brown is currently working on “many” US private label capital relief trade...

    News Analysis    5 October 2021
  • SCI Start the Week - 4 October

    A review of SCI's latest content

    Last week's news and analysis CRTs in the air Another two US warehouse loan banks said c...

    News    4 October 2021
  • CRTs in the air

    Another two warehouse loan banks said circling the market

    Two unnamed US regional banks are currently in the throes of putting together new capital relief tra...

    News    29 September 2021
  • Mobilising capital

    Call for risk transfer adoption in development finance

    Aid agencies, development finance institutions (DFIs) and multilateral development banks (MDBs) must...

    News    28 September 2021
  • Freddie prints again

    The seventh STACR of 2021 and third HQA prices

    Freddie Mac has priced its latest STACR deal, designated 2021-HQA3 and worth $1.07bn, via Morgan Sta...

    News    28 September 2021
  • SCI Start the Week - 27 September

    A review of SCI's latest content

    Last week's news and analysis BPCE up Debut French green RMBS prepped CLOs and beyond...

    News    27 September 2021
  • Fraud charges for Honor Finance pair

    Sector developments and company hires

    Fraud charges for Honor Finance pair The US SEC has announced fraud charges against James Collins a...

    Market moves    24 September 2021