Structured Credit Investor
LOGIN
 

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 Start the Week - 11 November

    A review of securitisation activity over the past seven days

    Stories of the week Pursuing illiquidity premia Corbin Capital answers SCI's questions Risk t...

    News    11 November 2019
  • Risk transfer return

    Bank of Ireland issues mezzanine tranche

    Bank of Ireland has issued an additional mezzanine tranche on top of the junior tranche of a 2017 ca...

    News    8 November 2019
  • Risk transfer round-up - 8 November

    CRT sector developments and deal news

    BMO will call a capital relief trade dubbed Muskoka Series 2017-1 in December. The senior secured an...

    News    8 November 2019
  • Rollover prepped

    NPL CRT to be refinanced

    Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans wi...

    News Analysis    7 November 2019
  • SCI Capital Relief Trades Awards 2019

    Personal Contribution to the Industry: Mascha Canio, Head of Credit & Insurance Linked Inves...

    Heading up a team responsible for one of the largest investment portfolios in the sector that has dr...

    News    6 November 2019
  • SCI Capital Relief Trades Awards 2019

    Advisor/Service Provider of the Year: Scope Ratings

    Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to i...

    News    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Credit Insurer of the Year: Arch Capital Group

    Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its po...

    News    4 November 2019
  • SCI Start the Week - 4 November

    A review of securitisation activity over the past seven days

    Transaction of the week Goldman Sachs is in the market with an unusual UK buy-to-let RMBS secured b...

    News    4 November 2019
  • Tactical opportunity?

    Downturn could spur CRT secondary activity

    Capital relief trade secondary market activity remains minimal. However, a credit downturn could spu...

    News Analysis    4 November 2019
  • Tough approach continues

    RTS leaves disclosure challenges unresolved

    The European Commission’s long-awaited regulatory technical standards on securitisation di...

    News Analysis    1 November 2019
  • SRT report pending

    EBA to propose harmonised excess spread treatment

    The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk tr...

    News Analysis    1 November 2019
  • SCI Capital Relief Trades Awards 2019

    Law Firm of the Year: Clifford Chance

    Clifford Chance has been involved in the capital relief trades market from the beginning and the pas...

    News    1 November 2019
  • GARC deal expected

    Sector developments and company hires

    EMEA Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Tr...

    Market moves    31 October 2019
  • Risk transfer round-up - 31 October

    CRT sector developments and deal news

    Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has...

    News    31 October 2019
  • SCI Capital Relief Trades Awards 2019

    Investor of the Year: European Investment Fund

    The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief t...

    News    31 October 2019
  • SCI Capital Relief Trades Awards 2019

    Innovation of the Year: FCT Jupiter 2019

    Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovatio...

    News    30 October 2019
  • SCI Capital Relief Trades Awards 2019

    Impact Deal of the Year: Room2Run

    As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2R...

    News    29 October 2019
  • SCI Capital Relief Trades Awards 2019

    Transaction of the Year: Syon Securities 2019

    Lloyds Banking Group’s synthetic UK RMBS Syon Securities 2019 was motivated by prudent ris...

    News    28 October 2019
  • SCI's latest podcast is now live!

    The editorial team discuss the hottest topics in securitisation today...

    In this month's exciting edition of the SCI podcast, the team talks about standardised banks...

    News    25 October 2019
  • SCI Capital Relief Trades Awards 2019

    Arranger of the Year: Credit Suisse

    Credit Suisse is SCI’s Arranger of the Year in recognition of the variety of structures it...

    News    25 October 2019
  • SCI Capital Relief Trades Awards 2019

    Issuer of the Year: Santander

    Santander was one of the banks that actively participated in efforts to extend the STS designation t...

    News    24 October 2019