Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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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 - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent...

    News    9 February 2018
  • Carillion impact gauged

    Capital relief trade issuers and investors have been assessing the effect of Carillion's def...

    News Analysis    5 February 2018
  • APRA signals change in tone

    The Australian Prudential Regulatory Authority has set out its priorities for 2018, most notably wit...

    News    1 February 2018
  • Innovative portfolio guarantee inked

    The EIF has completed five synthetic securitisations with five Italian banks, in the context of the...

    News Analysis    30 January 2018
  • SCI Start the Week - 29 January

    A look at the major activity in structured finance over the past seven days.

    Pipeline The balance of additions to the pipeline last week closely followed that of the week befor...

    News    29 January 2018
  • Slicing the risk

    Capital relief trade issuers and investors are weighing in on the virtues of a structuring technique...

    News Analysis    26 January 2018
  • Landmark financial guarantee completed

    The EIB and Credit Agricole completed an innovative synthetic securitisation in late December. Dubbe...

    News Analysis    23 January 2018
  • Programmatic issuance continues

    Intesa Sanpaolo last month returned to the risk transfer market with another GARC transaction. Dubbe...

    News Analysis    22 January 2018
  • SCI Start the Week - 22 January

    A look at the major activity in structured finance over the past seven days.

    Pipeline Last week saw pipeline additions return to favouring ABS. There were seven ABS added, alon...

    News    22 January 2018
  • Carillion liquidation met with cautious optimism

    The Irish stock exchange announced this week that a company, believed to be liquidated construction...

    News    19 January 2018
  • SCI Start the Week - 15 January

    A look at the major activity in structured finance over the past seven days.

    Pipeline Last week saw a ramping up of additions to the pipeline, led by ABS and RMBS. There were s...

    News    15 January 2018
  • Risk transfer round-up - 12 January

    Details have emerged of a Lloyds capital relief trade dubbed Cheltenham Securities 2017. The transac...

    News    12 January 2018
  • Barclays adds to US CRT impetus

    Barclays recently completed Colonnade Global 2017-4 Financial Guarantee, a rare US$100m risk transfe...

    News Analysis    11 January 2018
  • UBI Banca debuts SRT

    UBI Banca has executed its first capital relief trade, dubbed UBI 2017 RegCap 1. The approximately &...

    News    10 January 2018
  • SCI Start the Week - 8 January

    A look at the major activity in structured finance over the past seven days.

    Pipeline There were a few deals added to the pipeline in the first week of the year. These were fou...

    News    8 January 2018
  • CRTs coming to America?

    Capital relief trades (CRTs) have become an established feature of the European securitisation marke...

    News Analysis    8 January 2018
  • Risk transfer round-up - 5 January

    Deutsche Bank is understood to have closed two CRAFT risk transfer transactions, a bilateral deal an...

    News    5 January 2018
  • Santander, Lloyds ride synthetic CMBS wave

    Santander and Lloyds have each put together synthetic securitisations of commercial real estate port...

    News Analysis    4 January 2018
  • Project finance risk transfer completed

    Santander has completed a synthetic risk transfer securitisation, transferring risk on a €...

    News    22 December 2017
  • Embracing a tactical approach

    David Moffitt, head of tactical investment opportunities at LibreMax Capital, answers SCI's question...

    The Structured Credit Interview    22 December 2017
  • SRT investor concerns disclosed

    AFME, in association with the International Association of Credit Portfolio Managers (IACPM), has re...

    News    21 December 2017