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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 - 10 July

    CRT sector developments and deal news

    Commerzbank is rumoured to be readying a corporate capital relief trade that is expected to close in...

    News    10 July 2020
  • CPR for CRT from Freddie

    Freddie Mac's new upsized STACR shows market is healthy

    Freddie Mac has demonstrated that reports of the death of the CRT bond market are greatly exaggerate...

    Capital Relief Trades    9 July 2020
  • Arch restarts MILNs

    The relaunched Bellemeade Re 2020-1 from Arch Capital, priced at the end of last week, secured more...

    News Analysis    9 July 2020
  • Restructuring events?

    Uncertainty over CRE values weighs on CRTs

    Restructuring credit events in capital relief trades backed by commercial real estate loans will lik...

    News Analysis    9 July 2020
  • Polish SRT inked

    Santander completes capital relief trade

    Santander has completed a synthetic securitisation of Polish leasing receivables with the EIF. The t...

    News    9 July 2020
  • Risk transfer round-up - 3 July

    CRT sector developments and deal news

    Details have emerged of three corporate capital relief trades issued by Barclays last month. The ris...

    News    3 July 2020
  • Spanish SRT inked

    BBVA launches capital relief trade

    BBVA has completed an €87m mezzanine guarantee with the EIF. Dubbed Vela Four, the transact...

    News Analysis    3 July 2020
  • Fast amortisation

    SSPAIN deleveraging highlighted

    Scope Ratings has published a monitoring report for Santander’s 2019 US auto significant r...

    News    2 July 2020
  • Risk transfer round-up - 1 July

    CRT sector developments and deal news

    NatWest is rumoured to be readying a capital relief trade backed by mid-market corporate loans for 3...

    News    1 July 2020
  • Structuring negotiations

    CRT origination trends evolving

    Investors appear to be able to extract more than they used to during structuring negotiations for ca...

    News Analysis    26 June 2020
  • Impact SRTs eyed

    Newmarket launches asset management business

    Newmarket has launched its asset management business, which will focus on the nexus of structured so...

    News Analysis    23 June 2020
  • Risk transfer round-up - 22 June

    CRT sector developments and deal news

    Deutsche Bank has completed a US$125.58m six-year CLN that references a US$1.932bn global corporate...

    News    22 June 2020
  • SCI Start the Week - 22 June

    A review of securitisation activity over the past seven days

    FREE - Capital Relief Trades Virtual Panel - LIVE Join SCI live again this Thursday, 25 June, for a...

    News    22 June 2020
  • Sicilian CRT launched

    BAPR completes SME securitisation

    The EIF and Banca Agricola Popolare di Ragusa (BAPR) have completed a synthetic securitisation refer...

    News    19 June 2020
  • Lift off

    Credit Suisse finalises SRT

    Credit Suisse has priced an Sfr130.5m equity tranche that references a Sfr1.8bn blind pool of medium...

    News    19 June 2020
  • SRT debut

    Sabadell completes first synthetic securitisation

    Sabadell has completed a €96m mezzanine guarantee with the EIF. The transaction references...

    News    18 June 2020
  • Bridging gaps

    Linking SRT originating banks with insurance partners

    Texel is aiming to help insurers and banks bridge gaps in their understanding of how each sector app...

    Market moves    17 June 2020
  • Risk transfer round-up - 17 June

    CRT sector developments and deal news

    Credit Suisse is rumoured to be readying a capital relief trade from the Elvetia programme that is s...

    News    17 June 2020
  • SCI Start the Week - 15 June

    A review of securitisation activity over the past seven days

    Last week's stories Addressing inconsistencies Performance metrics switched Calabria confiden...

    News    15 June 2020
  • Risk transfer rebound

    Deutsche Bank completes SRT

    Deutsche Bank has completed a US$325m CLN that references a disclosed US$5bn global portfolio of lar...

    News Analysis    12 June 2020
  • Euro ABS 'game changer' recommended

    Sector developments and company hires

    Euro ABS ‘game changer’ recommended The European High-Level Forum (HLF) on the...

    Market moves    11 June 2020